This paper draws a causal link between the rise of global value chain participation (GVCP) and the decline of exchange rate pass-through (ERPT) to import prices over the last decades. We first illustrate in a structural two-country model how greater GVCP can reduce ERPT to import prices. In the...

While there is a consensus in the literature that offshoring has a polarising effect on the skill structure of labour demand, little is known about its impact on the capital side. In this paper, we analyse the effect of offshoring on the demand for capital by asset class using a rich...

We identify the connections between financial institutions from different sectors of the financial industry based on joint extreme movements in credit default swap (CDS) spreads. First, we estimate pairwise co-crash probabilities (CCP) to identify significant connections among 193 international...

Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper...

The internationalization of cities and the constitution of a new international space of power involves a much more expressive number of cities than the usual global cities. Nowadays, dozens of international organizations are composed of regional capitals, medium, and even small cities. With...

Digital work settings potentially facilitate remote collaboration and thereby decrease geographic frictions in knowledge work. Here, I analyze spatial collaboration patterns of some 191 thousand software developers in the United States on the largest code repository platform GitHub. Despite...