Sales and Markup Dispersion: Theory and Empirics

Models of monopolistic competition with heterogeneous firms have provided a fertile laboratory for studying a range of problems relating to the process of globalization. Much of this work to date has assumed special forms for preferences and technology, usually CES preferences on the demand side, and a Pareto distribution of…

Trade and long term unemployment

What is the effect of international trade on unemployment? In this paper, we explore the link between openness to trade and unemployment using a multi-country, multi-sector gravity model with embedded heterogeneous sector-and-country specific labour market frictions. Specifically, we introduce Diamond-Mortensen-Pissarides search-and-matching frictions, as modelled in Helpman and Itskhoki (2010), into…

Immigration and Wages Inequality in France

Over 232 million people now reside in a country where they were not born. Immigrants thus account for 3.2% of the world's population. In the past two decades, the fraction of the population in developed countries that is foreign-born increased from 7% in 1990 to 10% in 2010. The…

Does Country Size Matter for Trade Facilitation Assistance?

Greater attention is now being devoted to trade facilitation measures. The 159 members of the WTO agreed during their December 2013 meeting in Bali on a Trade Facilitation Agreement. And, the European Commission, the World Bank, and other donors have just launched the implementation of the Trade Facilitation Support Program…

Linguistic Proximity and Export Dynamics

Firms do not choose randomly their export market. Instead, empirical evidence suggests the existence of a geographic bias in the choice of export destination by firms. Firms tend to enter markets that are close to their existing export destinations. Chaney (2014) refers to this as the indirect search for new…

Sanctions and Exports Deflection

Exports sanctions continue to be a tool used by countries to influence policies of other governments, and export sanctions against Iran are no exception. Over the last century, sanctions were imposed 174 times by different countries. By definition, sanctions increase export costs. However, despite the importance of export costs in…