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We illustrate a new source of comparative advantage that is generated by countries' different ability to adjust to technological change. Our model introduces substitution of workers in codifiable (routine) tasks with more efficient machines, a process extensively documented in the labor...
Persistent link: https://www.econbiz.de/10012836713
resuscitate HOV by introducing a simple Hicks-neutral (HN) factor-productivity adjustment, an approach that was heavily criticized …. In this paper, we re-examine the productivity question by estimating factor-specific productivities from the individual …-augmenting technological differences. In particular, the factor-productivity adjustment works well for developed members of the OECD. Further …
Persistent link: https://www.econbiz.de/10010275798
Larger Indian firms selling inputs to other firms tend to have more customers, tend to be used more intensively by their customers, and tend to have larger customers. Motivated by these regularities, I propose a novel empirical model of trade featuring endogenous formation of input-output...
Persistent link: https://www.econbiz.de/10013311707
Firm-to-firm connections in domestic and international production networks play a fundamental role in economic outcomes. Firm heterogeneity and the sparse nature of firm-to-firm connections implicitly discipline network structure. We find that a large group of well-established statistical...
Persistent link: https://www.econbiz.de/10013427750
Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian...
Persistent link: https://www.econbiz.de/10010274793
estimated using panel data. The explanatory variables considered are productivity, unit labor costs, unit values, trade costs …
Persistent link: https://www.econbiz.de/10010291860
fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor …-intensive inputs to the labor-abundant countries than low-productivity firms. Differently from the traditional versions of factor … intensity across firms that is positively correlated with firm productivity. Using French firm-level data for the years 1996 to …
Persistent link: https://www.econbiz.de/10011388202
How valuable are long-term supplier relationships? To address this question, this paper explores relationships between U.S. importers and their suppliers abroad. We first establish several facts: almost half of U.S. imports are in relationships three years or older, relationship survival and...
Persistent link: https://www.econbiz.de/10011431260
into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … productivity growth, and endogenous changes in expenditures shares on manufacturing goods and services. We quantify the importance … accumulation and trade costs have been the most important drivers of trade in the sample at hand, whereas productivity growth and …
Persistent link: https://www.econbiz.de/10011451451
The economic effects of a pandemic crucially depend on the extend to which countries are connected in global production networks. In this paper we incorporate production barriers induced by COVID-19 shock into a Ricardian model with sectoral linkages, trade in intermediate goods and sectoral...
Persistent link: https://www.econbiz.de/10012207949