This study tests the importance of Ricardian technology differences for international trade. The empirical analysis has three comparative advantages: including emerging and advanced economies, isolating panel variation regarding the link between productivity and exports, and exploiting heterogeneous technology diffusion from immigrant communities in the United States for identification. The lat...

This paper examines shipments of wine from European producers to various European ports. The research question focuses on disaggregated decisions on which port to use controlling for port performance, distance, and whether a national border must be crossed to reach the port. Using a mixed logit model we find heterogeneous impacts of distance, performance, and national borders on port choice acr...

We provide evidence that increased political influence, arising from CIA interventions during the Cold War, was used to create a larger foreign market for American products. Following CIA interventions, imports from the US increased dramatically, while total exports to the US were unaffected. The surge in imports was concentrated in industries in which the US had a comparative disadvantage, not...

This paper applies the recently developed econometric methods of panel unit root tests and non-linear mean-reversion to investigate price convergence in China --the largest transitional economy in the world. We find that prices did converge to the law of one price in China for an overwhelming majority of goods and services based on a large panel dataset. The finding sheds light on the extent of...

This paper develops a dynamic model of innovation and international trade in which agents can direct their research efforts to specific goods the economy. Trade affects direction through its impact on expected market size for an invention, leading two-way relationship between technology absent standard quantitative Ricardian models. Following theory-consistent strategy estimate extent endogenou...

The hoped-for silver lining of euro-area austerity programs was to raise external competitiveness and improve current accounts. Using product- industry-level data for 12 countries over the period 1999–2018, we show that reductions in government spending reduce prices wages but only products with low import content industries export shares. This leads asymmetric expenditure switching, net export...

s tructural change is defined as a change in the relative weight of the important constituents of the macro-economic indicator such as production, taxes, imports and exports, workforce etc. since the structure change is one of the main reasons for the growth and economic development of countries, the investigation of the trend of changes in economic important constituents is important. tax as a...

This paper examines the composition of trade between the United States and eight Asian Pacific economies from 1962 to 1992. Analysis of the time series pattern of individual commodities at the SITC four-digit level reveals economically significant changes in the pattern of trade, reflecting changing comparative advantage based on changing factor proportions, technology transfer and product cycl...

Inspired by the theory of variety-expanding product innovation we derive a testable relationship of outsourcing on the growth rate of knowledge. We estimate this relationship with a firm-level dataset, which is a unique match of PATSTAT patent data and the Amadeus dataset. We find evidence that forward spillovers are stronger than backward spillovers, where forward spillovers are defined as spi...

Picture a small open economy in the North Atlantic Ocean, highly dependent on trade with the EU and NAFTA. How important are these trading blocs to the country’s exports? How important is the country’s location and size, and how do these affect the export sectors? A unique version of the gravity model is applied here using an inverse hyperbolic sine function. Typically, the export volume is sig...