Showing papers in "Journal of International Economics in 2014"

TL;DR: The authors provided the first evidence using gravity equations of both intensive and extensive (goods) margins being affected by EIAs employing a panel data set with a large number of country pairs, product categories, and EIA from 1962 to 2000.

TL;DR: In this paper, the impact of trade policy uncertainty on exporters is examined in a dynamic, heterogeneous rms model and it is shown that policy uncertainty will delay the entry of exporters into new markets and make them less responsive to applied tari reductions.

TL;DR: In this article, a new method was proposed to estimate the elasticity of trade with respect to trade frictions using disaggregate price and trade data for 123 developed and developing countries for the year 2004.

TL;DR: The authors constructed new series for common native language and common spoken language for 195 countries, which they used together with series for Common official language and linguistic proximity in order to draw inferences about the aggregate impact of all linguistic factors on bilateral trade, the separate role of ease of communication as distinct from ethnicity and trust, and the contribution of translation and interpreters to ease of communications.

TL;DR: The authors showed that the probability that a product is added to a country's export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product.

TL;DR: The authors analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies and finds that loose monetary conditions lead to booms in real estate lending and house prices' bubbles; these, in turn, materially heighten the risk of financial crises.

TL;DR: The authors explored the relationship between openness to trade, immigration, and income per person across countries and found evidence of a robust, positive effect of openness to immigration on long-run income per capita.

TL;DR: In this article, the authors exploit highly disaggregated bank-firm data to investigate the dynamics of foreign vs domestic credit supply in Italy around the period of the Lehman collapse, which brought a sudden and unexpected deterioration of economic conditions and a sharp increase in credit risk.

TL;DR: In this paper, the authors introduce a simple but flexible analytical framework in which both trade in goods and trade in tasks arise, and they use this framework to provide versions of the gains-from-trade and the famous four HO theorems (Heckscher-Ohlin, factor-price equalisation, Stolper-Samuelson, and Rybczynski) that apply to this environment.

TL;DR: The authors analyzed how a firm's specialization in its core products after exporting affects its factor intensity and productivity and found that firms become less capital-intensive but more productive after exporting, compared to non-exporters that share similar ex ante characteristics.

TL;DR: This paper examined the role of foreign liabilities and their composition in the determinants of external crises and found that the ratio of net foreign liabilities to GDP is a significant crisis predictor, mainly due to the net position in debt instruments.

TL;DR: The authors investigated the effect of foreign ownership by using domestic-acquired firms as the control group and found no evidence that foreign ownership can bring additional productivity gains to target firms, though both foreign and domestic acquisitions bring productivity improvements to the target firms.

TL;DR: In this paper, the authors propose a new model where consumer preferences are asymmetric across varieties and heterogeneous across countries, which allows for an identification of horizontal differentiation (taste) clearly distinguished from vertical differentiation (quality).

TL;DR: The authors showed that managers' export experience is a first-order feature in the data with an impact on a firm's export performance that is at least as strong as that of firm productivity.

TL;DR: In this paper, the authors use a linked employer-employee database from Brazil to evaluate the wage effects of trade reform, and find that a decline in trade protection is associated with an increase in average wages in exporting firms relative to domestic firms.

TL;DR: In this article, the authors examine new data on the number and revenues of foreign affiliates of multinational firms across a large number of country pairs and build and calibrate a multi-country general-equilibrium model of MP that combines a Lucas (1978) span-of-control with an Eaton and Kortum (2002) type model.

TL;DR: In this paper, the authors developed a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process, and provided an explanation why many firms choose hybrid sourcing and have both outsourced and integrated suppliers.

TL;DR: In this paper, the authors investigate how firms adapt to different types of corruption by adjusting their transport strategies and find that firms respond to the price effects of corruption, organizing production in a way that increases or decreases demand for the public service.

TL;DR: In this article, the authors study how competition from low-wage countries in international markets affects the quality content of high-wage country exports and show that the mean quality of French exports increased by 10-15% between 1995 and 2005.

TL;DR: In this paper, the authors study how new imported inputs aect the introduction of new domestic products and show that new products sell at higher prices compared to existing goods, and possess higher quality.

TL;DR: In this paper, an incomplete markets model of FDI is developed to account for the puzzle that countries more likely to expropriate assets also have a larger share of foreign direct investment (FDI) in the resource sector.

TL;DR: In this paper, the authors examine the impacts of trade liberalization on the labor markets of a small open economy, in an environment in which tariffs affect firms' payroll tax compliance decisions, and demonstrate that a reduction in domestic import tariffs reduces the average formal wage and that the direction of the effect on the share of informal employment depends on the initial labor market conditions.

TL;DR: This article studied the effect of collective action clauses (CACs) on government bond yields by exploiting secondary market data on sovereign bonds quoted in international markets from March 2007 to April 2011.

TL;DR: In this article, the authors focus on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process, and find strong evidence that openness improves the matching between workers and firms in industries with greater comparative advantage.

TL;DR: In this paper, the authors investigate competitive, selection and reallocation eects in monopolistic com- petition trade models and show that consumers tend to select more aggressively on productivity rather than forc- ing their average cost curves.

TL;DR: This paper developed an information-based theory of international currency based on search frictions, private trading histories, and imperfect recognizability of assets using an open-economy search model with multiple competing currencies.

TL;DR: This paper developed a model of cross-border M&A activity that features firm-level productivity shocks and endogenous export activity, and found that foreign firms were relatively more attracted to targets in the domestic country that had high productivity levels that induced them to invest in large export networks several years prior to acquisition, but subsequently experienced a negative productivity shock (i.e., cherries for sale).

TL;DR: In this paper, the authors consider the role of demographic trends in driving international capital flows in a multicountry overlapping generations model in which saving decisions are tied to agents' life expectancy.

TL;DR: In this article, the authors provide a model of product-based cultural change where trade integration leads to cultural convergence and a standard trade model of Dixit-Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics.

TL;DR: The authors used a quantitative equilibrium model with houses, collateralized debt and foreign borrowing to study the impact of global imbalances on the U.S. economy in the 2000s.