Special Economic Zones and Free Trade Zones
Special economic zones let governments change the rules in one place to attract investment and exports, but the famous successes...
International Trade and Economics
Explore the world of international trade and economics with our expert articles
Trade Finance Letters of Credit: Cross‑Border Payment Mechanisms
Trade finance letters of credit let strangers trade across borders by substituting a bank's promise for a buyer's, turning distance...
Rules of Origin and Trade Deflection
Rules of origin decide which goods qualify for preferential treatment in a trade agreement, preventing trade deflection while sometimes serving...
Trade Remedies Anti-Dumping: Countervailing Duties and Safeguards
Trade remedies anti-dumping rules, countervailing duties, and safeguards let governments raise selective import barriers after a formal investigation finds unfair...
Non-Tariff Barriers: How Trade Is Restricted Without Tariffs
Non-tariff barriers restrict trade through quotas, licensing, standards, and procurement rules rather than tariffs, making protection harder to see, measure,...
Lerner Symmetry Theorem: Import Tariffs Tax Exports
The Lerner symmetry theorem shows an import tariff and an export tax of equal rate have identical real effects, so...
Trade and Wages for Skilled and Unskilled: Textbook Defied
How trade and wages for skilled and unskilled workers diverged from textbook predictions, why the skill premium rose, and what...
Effective Rate of Protection: Why Low Tariffs Shelter More
The effective rate of protection measures how much a tariff structure shelters an industry's value added, explaining why a low...
Trade and Inequality: From Stolper-Samuelson to the China Shock
Trade and inequality have been debated since Stolper-Samuelson in 1941. The China shock literature gave the debate empirical teeth and...
Iceberg Trade Costs and the Distance Puzzle: Why Trade Frictions Still Shape Globalization
Iceberg trade costs explain why distance still matters for trade even in a globalized world. The distance puzzle remains unresolved...