Using the data from a developing country like India, we offer an empirical analysis to examine the relationship between devaluation of the Rupee and the real trade balance with her major trading partners since the liberalization process that began in July 1991. Exploiting the recent advances in panel-data time-series econometrics, we document that devaluation may not be effective in improving t...

We study infinite-horizon monetary economies characterized by trading frictions that originate from random pairwise meetings, and commitment and enforcement limitations. We prove that introducing occasional trade in “centralized markets” opens the door to an informal enforcement scheme that sustains a non-monetary efficient allocation. All is required is that trading partners’ be patient and th...

This paper analyzes virtual water trade flows through food products between India and its trading partners. It relies on the gravity model of estimates a panel data fixed effect regression to identify drivers trade. Our results show that was net exporter in during 1990–2013; however later it turned out be importer. Further our analysis shows distance partners as primary driver prefers with neig...

We examine the case of an important outsider to the Cobden‐Chevalier network of bilateral treaties in the second half of the nineteenth century. We attempt to explain this through a study of the structure of Danish trade and protection. We demonstrate, in contrast to previous accounts that have considered Danish trade policy somewhat irrational, that Denmark was right to remai...

This paper presents a general C platform for the implementation of a trade network game TNG that combines evolutionary game play with preferential partner selec tion In the TNG successive generations of resource constrained traders choose and refuse trade partners on the basis of continually updated expected payo s engage in risky trades modelled as two person games and evolve their trade strat...

This paper studies the effect of constraining interactions within a market. A model is analysed in which boundedly rational agents trade with and gather information from their neighbours within a trade network. It is demonstrated that a trader’s ability to profit and to identify the equilibrium price is positively correlated with its degree of connectivity within the market. Where traders diffe...

This paper applies Export Similarity Index to examine China’s export potential to ASEAN market by comparing China with six main ASEAN member countries (ASEAN 6) and the other main trade partners of ASEAN. It shows that competition is severe on industrial level in ASEAN market, and the bilateral trade potential is uncertain. While accounting for the factors of size, distance and integration etc....

— We use panel data consisting of 96 countries and covering the period 1960–2000 to investigate the effects of free trade agreements (FTAs) and hub-and-spoke systems of FTA on exports. Our empirical results imply an annual growth rate of 5.57% in exports and hence a doubling of exports after 12.4 years between FTA partners. Non-overlapping FTAs account for 4.12%, while hub-andspoke FTAs account...

We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among export...

We investigate the 2008–2009 trade collapse using microdata from a small open economy, Belgium. Belgian exports and imports mostly fell because of smaller quantities sold and unit prices charged rather than fewer firms, trading partners, and products being involved in trade. Our difference-in-difference results point to a fall in the demand for tradables as the main driver of the collapse. Fina...