This paper surveys the recent body of work in economics on the importance of global value
chains (GVCs) in shaping international trade flows and production patterns. On the empirical …

Gravity has long been one of the most successful empirical models in economics.
Incorporating deeper theoretical foundations of gravity into recent practice has led to a richer …

The gravity equation is the workhorse model of trade. Despite solid theoretical foundations
and clear gains from theory‐consistent policy analysis, there are still gaps between gravity …

We study the effects of becoming a supplier to multinational corporations (MNCs) using tax
data tracking firm-to-firm transactions in Costa Rica. Event study estimates reveal that …

We review a recent body of theoretical work that aims to put numbers on the consequences
of globalization. A unifying theme of our survey is methodological. We rely on gravity models …

This paper examines the importance of buyer-supplier relationships for firm performance.
We develop a model in which firms outsource tasks and search for suppliers. Lower search …

This chapter reviews the new approach to international trade based on firm heterogeneity in
differentiated product markets. This approach explains a variety of features exhibited in …

This paper presents theory and evidence from disaggregated Chinese data that tariff
reductions induce a country's producers to upgrade the quality of their exports. We first …

We build into a Ricardian model sectoral linkages, trade in intermediate goods, and sectoral
heterogeneity in production to quantify the trade and welfare effects from tariff changes. We …

Micro-level data have had a profound influence on research in international trade over the
last ten years. In many regards, this research agenda has been very successful. New …