We propose an intermediation core for an economy that is explicit in how traders organize themselves into trade cooperatives (intermediaries) and how trade between them gets carried out. The intermediation core allocations are closely related to equilibrium allocations of a non-cooperative intermediation game in Townsend (1983). We show that the intermediation core contains all subgame-perfect ...

This paper derives the empirical estimation model from endogenous economic growth theory, and tries to provide an effective reasonable answer question ‘how trade affects high-quality development through spillovers’ perspective of spatial interdependence. Based on data 69 countries 2000 2015, it is confirmed that there obvious correlation between neighboring countries’ TFP, TFP geographical show...

The empirical relationship between trade protection and economic growth is surprisingly fragile, as shown in a number of other papers. After demonstrating this empirical sensitivity, we address one possible explanation for these findings: that the relationship is nonlinear. Following the endogenous growth literature, we test for the possibility that the relationship between trade barriers and g...

We develop a new theoretical political economy framework called ‘parallel contest’ that emphasizes the fight over trade agreement (TA) ratification within countries. TA is inherently uncertain in each country because anti- and pro-trade interests contest other to influence their own government's decision. As terms-of-trade theory of TAs, removes externalities created by unilateral tariffs. But,...