In this paper we analyse the interplay between services and manufacturing. This is done through identifying and quantifying a direct link between manufacturing exports and the sales by service providers. For identification of this transmittance mechanism, with the help of highly detailed...

In endeavouring to explain the empirical puzzle that the sunk costs of exporting are important, but that, at the same time, trade flows do not, on average, survive for very long, this paper explores the concepts of core and peripheral markets. First, it illustrates that if the importance of sunk...