The Trade programme studies the effects of globalisation and trade policy on workers, firms and economies. It analyses the market power of global firms, the role of international trade agreements, and the impact of Brexit on the UK and EU.
Globalisation dramatically increases flows of goods, services, ideas, investments and people, across national borders.
CEP's research on trade seeks to understand the causes and consequences of these flows and the ways in which policy shapes and responds to them.
Our early research based around the new economic geography looked at the role of local resources and technologies and of the cost of doing business at a distance in explaining the economic geography of nations and regions.
Later research placed more emphasis on the role of firms and how differences across firms helped us better understand why exporters are more productive than non-exporters and how the impact of trade liberalisation would be felt unequally across firms. Why are some firms able to expand and access overseas markets to reach customers and set up globalised production processes while other firms are forced out of business? The way in which firms relocate different stages of the production process and restructure operations internationally by outsourcing and offshoring activities has been the focus of our work on global value chains.
The uneven impacts of trade are felt not only by firms but also by households. Integrating national economies affects wages and prices across the economy, and some workers will be made better off and some worse off as a result. Recently developed tools allow researchers to study inequality in the distribution of these gains from trade in more detail than was previously possible. To understand the economic forces at work CEP research combines these new theoretical models with many different data sources, providing information at country, industry, firm, and even transaction level.
Along with technology and geography, politics and regulations also determine the opportunities and the costs of economic integration, as well as how the gains are shared. Our work on Brexit, and on trade policy more generally, puts these questions to the fore.
Product Mix and Firm Productivity Responses to Trade Competition
Thierry Mayer, Marc J. Melitz and Gianmarco I.P. Ottaviano document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. Read more...
Shifts in Economic Geography and their Causes
Tony Venables outlines what's driving the economic geography of cities, nations and the world economy. Read more...
How have EU's Trade Agreements Impacted Consumers?
Drawing on recent developments in the quality literature and using detailed import price and expenditure data, Holger Breinlich, Swati Dhingra and Gianmarco Ottaviano estimate the variety, quality and price effects of EU Free Trade Agreements (FTAs). Read more...
UK Trade and FDI: A Post-Brexit Perspective
Leaving the EU will reshape the UK's economic relations with the rest of the world. Swati Dhingra and colleagues summarize the findings of recent research studying the UK's role in the global economy, and the consequences of Brexit for UK trade, investment, and living standards. Read more...
Immigration: the link to international trade in services
Two notable features of globalisation are the growth of immigration and the growth of international trade in services. Exploring links between these phenomena, Gianmarco Ottaviano, Giovanni Peri and Greg Wright find that immigrants play a key role in promoting UK exports of business and legal services - not just to their home countries but across the world. Read more...
Josh De Lyon and Swati Dhingra
6 May 2021
13 April 2021
Rafael Dix-Carneiro, Joao Paulo Pessoa, Ricardo Reyes-Heroles and Sharon Traiberman
22 March 2021
17 March 2021
Holger Breinlich, Harald Fadinger, Volker Nocke and Nicolas Schutz
15 March 2021
1 March 2021
23 February 2021
10 February 2021
3 February 2021
3 February 2021
Hanwei Huang, Thomas Sampson and Patrick Schneider
3 February 2021
21 January 2021
19 January 2021
Swati Dhingra, Rebecca Freeman and Hanwei Huang
12 January 2021
Josh De Lyon and Joao Paulo Pessoa
11 January 2021
Chad Bown, Paola Conconi, Aksel Erbahar and Lorenzo Trimarchi
6 January 2021
César Ducruet, Réka Juhász, Dávid Krisztián Nagy and Claudia Steinwender
8 December 2020
7 December 2020
1 December 2020
Hanming Fang, Chunmian Ge, Hanwei Huang and Hongbin Li
19 November 2020
Pol Antràs, Stephen J. Redding and Esteban Rossi-Hansberg
2 November 2020
Shania Bhalotia, Swati Dhingra and Fjolla Kondirolli
2 November 2020
Pol Antrās, Stephen J. Redding and Esteban Rossi-Hansberg
30 September 2020
Stephen J. Redding
29 September 2020
24 September 2020