NBER working papers from July that I ought to read when I have some free time:
Lee Bransetter & Nicholas Lardy: A primer on China for international economists who aren’t specialists.
N. Gregory Mankiw & Phillip Swagel: A review of the political uproar over offshore outsourcing and some recent empirical data.
Jonathan Eaton & Samuel Kortum: A dynamic Ricardian model of research specialization across countries and its consequences for relative wages.
Trade Diversion 
Hi, I am at the NBER Summer Institute right now and saw a great paper by Amiti and Koening
Click to access wp05146.pdf
It shows how tariff liberalisation can promote productivity growth; the new angle is that they distinguish between tariffs on inputs and final good tariffs finding that the input tariffs have a much bigger effect.
Overall it is a message about how developing nations can promote their industry.