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This study re-examines the impact of corruption on international trade accounting for both inter- and intra-national flows in line with the latest advances in the gravity equation literature. Using a wide sample of countries for the period 1995–2017, our results show that the non-inclusion of internal trade flows drastically biases the estimations. Additionally, we find that the negative impact of corruption on trade is reduced, ceteris paribus, in poorer countries. We also find non-linearities, more corrupt countries present a more harmful impact of corruption on trade. Moreover, we perform a general equilibrium analysis to investigate the impact of a given reduction in perceived corruption on a selected group of countries’ economic growth and prices. We find that these effects are far from being negligible, especially when there is a “synchronized” reduction in corruption in most corrupt countries.

Extent to which, trade flows of Basque Country is affected, by its sharing of national border with Spain, is examined.

Byline: Rafael Llorca vivero (1) Keywords: firm size; process innovation; product differentiation; R&amp D; rivalry Abstract: This paper proposes a theoretical model in which the incentives that product differentiation exercises on process innovation are established. The resulting quadratic relationship determines a point beyond which a trade-off between these two variables exists. The estimations based on a panel data of Spanish manufacturing firms confirm this result. Moreover, firm size seems to play a important role on process innovation only for those firms with a certain degree of product differentiation. For the rest, the degree of differentiation of rival firms is the relevant variable. Author Affiliation: (1) University of Valencia, Spain Article History: Registration Date: 05/10/2004

This paper develops and estimates a model to study the effect of improving the quality of commercial trade law on trade flows. We focus on improvements aimed to privately resolve disputes among trading partners: international commercial arbitration and conciliation. The main novelty of the model is to explicit the balance between the contractual quality of importer and exporter (contractual distance) in an environment with informational frictions (contractual noise). Using a structural gravity estimation with high‐dimensional fixed effects, the main contribution of the empirical exercise is to confirm previous results and unravel new traits that align with our theoretical results. Arbitration has a moderate and positive effect on exports that increases (decreases) with the contractual quality of the exporter (importer) and the remoteness of markets. The effects of conciliation are similarly positive, but only for similar trading partners with high levels of income. Results also suggest both domestic trade law reform and international treaties have a positive effect on trade, with a stronger effect of the latter. [ABSTRACT FROM AUTHOR]

This paper analyzes how a country's degree of economic development affects the impact of banking crises on international trade. To this end, we estimate a gravity model of trade using a sample of 139 countries over the period 1975-2012. Our results show that middle income countries are generally the most negatively affected. In contrast, financial turmoil appears to have less impact on bilateral trade flows among high income countries and, more specially, among low income nations. The level of financial development, contract enforcement, as well as the extent of the use of banking credit within international trade all help to explain our findings. [ABSTRACT FROM AUTHOR]