Abstract We develop a model of international trade with heterogeneous firms and monopsonistically competitive labour markets. show that due to monopsonistic competition our makes sharply different predictions about the effects export goods offshoring tasks. Trade in is unambiguously welfare increasing as domestic resources are reallocated large high productivity low productivities exit market t...

Abstract This paper theoretically examines how country‐specific formal and informal institutions are interrelated through international trade within a two‐country general‐equilibrium framework. When collectively generate institutional quality, endogenously arise based on exogenously given institutions. Institutional quality governs the productivity of an institutionally intensive sector that fe...

In this paper, I revisit the problem of the anomaly of terms of trade dynamics. First, I empirically analyze the effect of a US aggregate labor productivity shock on the US terms of trade using a VAR and Maximum Forecast Error Variance identification. I find that the shock appreciates the terms of trade of the US. Next, using a non-homothetic preference a lá Melitz and Ottaviano (2008), I expla...

In this paper, we analyze the effects of a unilateral change in an emissions tax model international trade with heterogeneous firms. We find positive effect tighter environmental policy on average productivity reforming country through reallocation labor toward exporting Domestic aggregate fall, due to both scale and technique effect, but show that reduction following increase is smaller than a...

Abstract International economic relations and trade in particular have been thriving since World War II. Whilst the lowering of barriers dismantling restrictions long enjoyed support both among economists policymakers, there has recently a swing back to protectionist policies. In virtually all major economies, surprising new interest autarky can be observed. Today, USA member countries European...