This paper provides a unified framework for quantifying the cross-country and cross-sector interactions among trade, innovation, knowledge diffusion. is used to study effect of trade liberalization in an endogenous growth model which comparative advantage stock are determined by innovation The calibrated match observed heterogeneity production, efficiency, spillovers. counterfactual analysis sh...

This paper analyzes the effects of exchange rate volatility on bilateral trade flows. Through use of a gravity model and panel data from western Europe, exchange rate uncertainty is found to have a negative effect on international trade. The results seem to be robust with respect to the particular measures representing exchange rate uncertainty. Particular attention is reserved for problems of ...

States with weak institutions can lose from trade with strong states when trade is subject to predation. The happy liberal idea of trade fostering better institutions and peace can be turned on its head. The Ricardian model of trade subject to predation offered here implies imperialism without capital, contra Marxists. Weak and poor South trades with strong and rich North. Poor South labor is a...

We investigate the extent to which antidumping actions eliminate trade altogether. Using quarterly 10-digit HS-level export data for products involved in U.S. antidumping cases we find that antidumping actions increase the hazard rate by more than 50%. We find strong evidence of investigation effects with the impact during the initiation and preliminary duty phases considerably larger than once...

The recent literature on firm exporting behaviour has pointed out to sunk-cost as key determinant of export behaviour yet little insight into what they include or how they vary with experience. In this paper we provide fresh evidence on the barriers to exporting and the role of export experience and other firm-level characteristics. Our results indicate that experience matters but in a non-line...

We provide a comprehensive empirical analysis of the links between international services outsourcing, wages and innovation using plant level data covering the period 2000 to 2004. Somewhat consistent with the predictions of recent theory, we observe a positive relationship between international outsourcing of services and innovative activity, measured in terms of R&D, at the plant level. Howev...

We provide a comprehensive empirical analysis of the links between international services outsourcing, wages and innovation using plant level data covering the period 2000 to 2004. Somewhat consistent with the predictions of recent theory, we observe a positive relationship between international outsourcing of services and innovative activity, measured in terms of R&D, at the plant level. Howev...

There is a continuing debate about whether international trade is responsible for the observed skilled-unskilled wage gap. In this paper we present a general equilibrium trade model with differentiated goods. We begin with an analytical model and show how changes in relative factor returns can be decomposed into changes in commodity prices, changes in the trade balance, and changes in the facto...

International trade models typically assume that producers in one country trade directly with final consumers in another. In reality, of course, trade can involve long chains of potentially independent actors who move goods through wholesale and retail distribution networks. These networks likely affect the magnitude and nature of trade frictions and hence both the pattern of trade and its welf...

This paper examines the effect of international outsourcing of intermediate inputs on labour productivity at the level of the plant that engages in outsourcing. To do so we use plant level data for the electronics industry in the Republic of Ireland. Using a fresh perspective on international outsourcing and productivity, we focus on the nature of outsourced inputs (services or tangibles) and t...