This paper examines the role of international trade in the reallocation of U.S. manufacturing activity within and across industries from 1977 to 1997. It introduces a new measure of industry exposure to international trade, motivated by the Heckscher-Ohlin model, which focuses on where imports originate rather than their overall level. Results demonstrate that plant survival as well as output a...

All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including O notice, is given to the source. There are two principal theories of why countries trade: comparative advantage and increasing returns to scale. Yet there is no empirical work that assesses the relative importance of these two theories in acc...

This paper investigates the determinants of intraindustry trade IIT , horizontal IIT HIIT , and Vertical IIT VIIT in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union EU-27 was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory...

Using data from the US commodity flow surveys, we show that the historical UnionConfederacy border lowers contemporaneous trade between US states by about 16 percent relative to trade flows within the former alliances. Amongst one million placebos, there is no other constellation of state grouping that would yield a larger border effect. The finding is robust over different econometric models, ...

This paper is a response to Røpke’s (1994) question whether environmental taxes increase or decrease the volume of international trade. Using a three-country Heckscher–Ohlin–Samuelson model, it is shown that the effect can be in either direction. In the absence of pollution haven and three-country effects that reverse natural comparative advantage, environmental taxes decrease (increase) the vo...

Motivated by the non-linear and S-shaped pattern between trade liberalization and capital inflow observed in cross country data, this paper offers a new perspective in understanding the relation between these two. The static model nests Melitz style heterogenous firms with endogenous mark-up within a classical Heckscher-Ohlin style comparative advantage frame work. In this integrated model trad...

Perdangangan internasional sangat mempengaruhi pertumbuhan ekonomi suatu negara. Salah satu indikator adalah dengan Produk Domestik Bruto (PDB). PDB merupakan kesejahteraan perekonomian di negara dan dapat menjadi rujukan untuk mengukur masyarakat yang diukur tingkat pendapatan (income). Maka semakin meningkat ekspor negara, akan pula. Metode Penelitian digunakan dalam penelitian ini menggunaka...

We show a range of complexity results for the Ricardo and Heckscher-Ohlin models of international trade (as Arrow-Debreu production markets). For both models, we show three types of results: 1. When utility functions are Leontief and production functions are linear, it is NP-hard to decide if a market has an equilibrium. 2. When utility functions and production functions are linear, equilibria ...

Since changes in trade openness are typically confounded with other factors, it has been difficult to identify the labor market consequences of increased international trade. The advent of the United States Interstate Highway System provides a unique policy experiment, which I use to identify the effect of reducing trade barriers on the relative demand for skilled labor. The Interstate Highway ...