Trade Costs in the Global Economy

Sustainable Trade Relations in a Global Economy

This paper illustrates, how experimentation with a system dynamics model may be used to determine the terms of trade for meeting long term contentions for sustaining global economic relations and environment. It has two parts, a review of empirical evidence that describes the trends in the volume and the nature of international trade over the past decade, and an exploratory analysis of their im...

Global Economy Chris Edmond International Trade

Virtually all economists, liberal or conservative, believe that free (or freer) trade is a good thing: good for consumers, good for workers. Why? Because consumers are able to buy products from the cheapest vendor, and workers are able to take jobs that offer the highest wages. But if trade is such a good idea, why do non-economists find the idea so puzzling, and even dangerous? The purpose of ...

Trade and Growth in an Unequal Global Economy∗

This paper studies the patterns of trade and the incentives to innovate in an unequal global economy. We introduce non-homothetic preferences in a general-equilibrium model of endogenous growth and international trade between two countries, and argue that the effects of market integration on the consequent trade patterns and the incentives to innovate depend on the degree of income inequality a...

The Role of Trade Costs in Global Production Networks Evidence from China’s Processing Trade Regime

Trade and the Informal Economy

It was generally understood during the 1960s and 1970s that, with economic growth, the informal economy would shrink. But despite strong global growth that coincided with a massive increase in international trade, many jobs in developing countries remain in the informal economy. The share of employment in the informal economy has been persistent in many developing countries over recent decades ...