nonhomogeneous but nonmonotonic as well. We use the model as a basis for estimating Japanese and U.S. exports and DFI positions … around the world. Consistent with the theory we find that the importance of DFI relative to exports grows with population …, although, contrary to our theory, the elasticity of DFI, as well as exports, with respect to population is less than one. We …

We study the instability of hyper-specialization of exports. We have two main findings. (1) Specializations are … emphasis on the nations where the exports originate. The high share of idiosyncratic variance (residual at the source …

1964 to 1973. Our results also lead us to question whether Japanese exports were a particularly important source of …

's comparative advantage by altering the composition of exports. Undervaluation may discourage specializing in high-value added …