Empirical Essays in International Economics

The results of this thesis are policy relevant in several perspectives.
First, the results suggest that governments can stimulate economic integration in the region via migration policies even if sizable intra-regional trade is absent.
Second, central banks in advanced economies should focus primarily on monitoring domestic rather than global economic slack as (core) inflation remains largely a domestic phenomenon.
Third, free trade area agreements can have significant indirect effects on trade flows. In formulating their trade policy stance policy makers in emerging markets may therefore consider secondary aspects that arise from the establishment of closer economic ties with advanced economies. Important relevant aspects include the improvement in the quality of institutions and the improvement in the quality of infrastructure.