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...

We investigate the effect of credit constraints on the growth of exports at the micro level. We develop a stylized dynamic model showing credit constraints play a key role in early stages of exporting, but not in later stages. Our empirical results using product level data on exports to twelve European Union members and the U.S. support the model’s predictions: exports from more credit constrai...

Revealed comparative advantage indices are calculated for China (1980-2000 period) and the Chinese provinces (1990-1998 period) and then incorporated into a reduced form export equation. The results of China’s export patterns show that China has moved from a heavy industry-oriented development strategy to a comparative advantage one, with, however, marked differences among provinces. The econom...

This study uses tailor made enterprise level data from various sources for firms from manufacturing industries to test for the link between credit constraints, measured by a credit rating score provided by a leading credit rating agency, and imports in Germany for the first time. We find empirical evidence that a better credit rating score is positively related to extensive margins of import – ...

This paper examines exchange rate pass-through in the automobile markets of twelve European Union countries. Using retail prices for individual car models for the 1993-96 period our estimates are based on a hedonic pricing framework which controls for model specific characteristics. Pass-through is found to be significantly below fifty percent in all countries. There is no evidence that either ...

This paper applies the panel fixed effects with vector decomposition estimator to three FDI datasets to estimate the impact of time-invariant variables on FDI while including fixed effects. We find that the omission of fixed effects significantly biases several of these variables, especially those proxying for trade costs and culture. After including fixed effects, we find that many time-invari...

The few existing empirical studies of U.S.-Japan trade agreements have relied primarily on descriptive statistics or univariate time series methods. We conduct a more powerful test by evaluating agreements in the context of well-specified econometric models. Consistent with trade theory, import demand is modeled as a cointegrating relationship with income and relative price variables, where a t...

This paper investigates the determinants of Spanish vertical intra-industry trade with a large sample of countries. We empirically test the comparative advantage explanation. To this aim, we build physical, human and technological capital stocks. On average, that is using OLS techniques, differences in endowments are a limitation for vertical intra-industry trade. Using quantile regressions tec...