Trade and growth theories predict a mutual causation of innovation and exports. We test empirically whether innovation … exogenous to firms’ export performance. We find that innovation attributable to this variation leads to an increase of roughly 7 … percentage points in the export share of German manufacturing firms. The evidence is robust to several alternative specifications …

This paper presents a two-country two-commodity dynamic model with free international asset trade in which one country … stagnant country’s current account depreciate the home currency, expand home employment and improve the foreign terms of trade …

In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to … fundamental revision of Obstfeld and Rogoff’s argument. A further novelty of our work is in tying bilateral trade behavior to … desired aggregate trade balances and desired intertemporal trade. …

this theoretical and empirical puzzle by diagnosing a “pathological export boom” and a “bazaar effect”. Excessively high … fraction of the labour intensive sectors and drive too much capital and labour into the capital intensive export sectors … upstream production activities which implies that export quantities grow too much in relation to value added contained in …

itself) to a sizable and statistically significant increase in trade between the member countries of EMU. In this paper, we … put the trade effect of the euro in historical perspective. We argue that the creation of the EMU was a continuation (or … strong evidence of a gradual increase in trade intensity between European countries. Once we control for this trend in trade …