An empirical tradition in international trade seeks to establish whether the predictions of factor abundance theory match with the data. The relation between factor endowments and trade in goods (commodity version of Hecksher-Ohlin) provide mildly encouraging empirical results. But in the analysis of factor service trade and factor endowments (factor content version of HO), the results show tha...

Examining the trade prospects for the new European Union (EU) member states and the EU associated partner countries is an important issue in the context of European eastward enlargement and greater economic integration with its immediate neighbours. An out-ofsample approach to projecting trade volumes for twenty countries of interest is adopted using a gravity equation for a panel data set of b...

This paper develops a simple network model to describe the dynamic of the intensive and extensive margin of international trade flows. The result is achieved by means of the combination of two mechanisms of proportional growth: the first (discrete) determines the formation of trade links, the second (continuous) governs trade intensity. We show that our setup is able to simultaneously match a l...

We study how opening to trade affects economic growth in a model where heterogeneous firms can adopt new technologies already use by other their home country. characterize the rate using summary statistic of profit distribution: mean-min ratio. Opening increases spread through increased export opportunities and foreign competition, induces more rapid technology adoption, generates faster growth...

Why More West than East German Firms Export Using unique new data and a recently introduced non-linear decomposition technique this paper shows that the huge difference in the propensity to export between West and East German plants is to a large part due to differences in firm size and human capital intensity. JEL Classification: F14

This paper investigates the structure East Asian trade flows over the high-growth period of 1970-1996. Data for Korea, Malaysia, Indonesia and the Philippines are analysed, using measures of static intra-industry trade (Grubel-Lloyd index) and of dynamic (marginal) intra-industry trade. Inferences drawn from those results are based on the “smooth adjustment hypothesis”, according to which intra...

Using a large longitudinal data set, we study the effects of increased trade on earnings and mobility in the Swedish labor market in the late 1980s and early 1990s. Earnings respond significantly to changes in industry sales, whether generated by domestic market forces or international trade: Swedish exports (imports) raise (lower) annual earnings, but changes in trade affect earnings just as a...

This paper analyses the link between offshoring in German plants and the offshoring potential of their employees. We use information on the offshoring potential of jobs from representative task data and merge it with linked employer-employee data, for which information on different modes of offshoring behaviour is available. We empirically identify individual and plant-level determinants of off...

International trade exposure affects job creation and destruction along the intensive margin (job flows due to expansions and contractions of firms’ employment) as well as along the extensive margin (job flows due to births and deaths of firms). This paper uses 1992-2010 yearly employment data from the universe of U.S. establishments to construct job flows at both the industry and commuting-zon...

The existence of a large border effect is considered as one of the main puzzles of international macroeconomics. We show that the border effect is, to a large extent, an artefact of geographic concentration. In order to do so we combine international flows with intranational flows data characterised by a high geographic grid. At this fine grid, intranational flows are highly localised and dropp...