We show that international consumption risk sharing is significantly improved by capital flows, especially portfolio … investment. Concomitantly, we show that poor institutions hamper risk sharing, but to an extent that decreases with openness. In … particular, risk sharing is prevalent even among economies with poor institutions, provided they are open to international …

financial development has important consequences for the efficiency and specialization (or diversification) of investments, in a …

that financial development has important consequences for efficiency and specialization (or diversification) of investments …

We identify the groups of countries where international risk-sharing opportunities are most attractive. We show that … the bulk of risk-sharing gains can be achieved in groups consisting of as few as seven members, and that further marginal … benefits quickly become negligible. For many such small groups, the welfare gains associated with risk sharing are far larger …

distribution costs in the export market, high and low productivity firms react differently to a depreciation . Whereas high … productivity firms optimally raise their markup rather than the volume they export, low productivity firms choose the opposite … aggregate impact of exchange rate movements. The presence of fixed costs to export means that only high productivity firms can …

This paper analyses the welfare implications of international spillovers related to productivity gains, changes in …-equilibrium model with monopolistic competition, drawing a distinction between productivity gains that enhance manufacturing efficiency …

This paper analyzes empirically the effect of spatial agglomeration of activities on the productivity of firms using … location choice: we find very little difference between the geography that would maximize productivity gains and the geography …

We investigate theoretically and empirically the competitive effects of increased trade on prices, productivity and … productivity. In response to an increase in openness, markups show a steep short run decline, which partly reverses later, while … productivity rises in a manner that increases over time. Our estimates suggest that EU manufacturing prices fell by 2 …