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Do Free Trade Agreements Actually Increase Members' International Trade?
For more than forty years, the gravity equation has been a workhorse for cross-country empirical analyses of international trade flows and, in particular, the effects of free trade agreements (FTAs)Expand
The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence
Despite the gravity equation's empirical success in "explaining" trade flows, the model's predictive potential has been inhibited by an absence of strong theoretical foundations. A generalExpand
The growth of world trade: tariffs, transport costs, and income similarity
Abstract In the 25th anniversary issue of the Brookings Papers on Economic Activity, Paul Krugman [Krugman, P., 1995. Growing world trade: Causes and consequences. Brookings Papers on EconomicExpand
Economic determinants of free trade agreements
Abstract The purpose of this study is to provide the first systematic empirical analysis of the economic determinants of the formation of free trade agreements (FTAs) and of the likelihood of FTAsExpand
The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade
A general equilibrium model of world trade with two differentiated-product industries and two factors is developed to illustrate how the gravity equation, including exporter and importer populations,Expand
Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation
Using a Taylor-series expansion, we solve for a simple reduced-form gravity equation revealing a transparent theoretical relationship among bilateral trade flows, incomes, and trade costs, based uponExpand
A knowledge-and-physical-capital model of international trade flows, foreign direct investment, and multinational enterprises
Abstract This paper addresses two important issues at the nexus of the literatures on international trade, foreign direct investment (FDI), foreign affiliate sales (FAS), and multinationalExpand
Economic integration agreements and the margins of international trade
One of the main policy sources of trade–cost changes is the formation of an economic integration agreement (EIA), which potentially affects an importing country's welfare. This paper: (i) providesExpand
The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade
Theoretical rationales for the robust empirical relationships between the share of intraindustry trade between two countries and the average levels of, and inequalities between, their GDPs, perExpand
Estimating the effects of free trade agreements on international trade flows using matching econometrics
This paper provides the first cross-section estimates of long-run treatment effects of free trade agreements on members' bilateral international trade flows using (nonparametric) matchingExpand
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