This paper studies the great collapse in value added trade using a structural decomposition analysis. We show that … changes in vertical specialisation accounted for almost half of the great trade collapse, while the previous literature on … gross trade has mainly focused on final expenditure, inventory adjustment and adverse credit supply conditions. The decline …

trade imbalances in gross terms can differ substantially from those measured in value added terms. However, the factors … novel decomposition of bilateral gross trade balances that accounts for the differences between gross and value added … concepts. The bilateral analysis contributes conceptually to the literature on double counting in trade by identifying the …

model of trade and MNE activity in which the mode of serving a market depends on the well-known proximity … quantitative finding is that a reduction in trade costs triggers much larger responses in growth rates and exit rates, for young …

investment in quality. The bias, however, can lead to inefficient allocation of R&D efforts. From a policy perspective, we …