Recent advances in trade theory suggest novel gains from trade liberalisation through technology adoption by expanding exporting firms. These theories rely on strict assumptions regarding the productivity sorting of firms with different technology use. In this paper, we test the sorting of...

The distribution of factor incomes from a macroeconomic perspective is an increasingly popular research topic—be it for its implications for the personal income distribution or the apparent mistake in previous research declaring it to be constant over time. The labour share has been decreasing...

Co-ethnic networks foster trade by providing information about trading opportunities and taking advantage of mutual trust. While the economics literature usually focuses on direct ethnic links between source and host countries, sociological studies adopt a broader perspective. They emphasize the...

Do pro-trade effects of free trade agreements reflect timing of policy or dynamic trade adjustment? Only the latter involves dynamic welfare gains. I find that dynamic trade adjustment is as important as the immediate impact effect of free trade agreements.