This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is...

Intro -- Contents -- I. INTRODUCTION -- II. LITERATURE REVIEW -- III. EMPIRICAL STRATEGY -- IV. RESULTS -- V. CONCLUSIONS -- Appendix I. Compensation Share -- Appendix II. A First Pass at Data: Bivariate Regression Results -- Appendix III. Correlation Matrix of Explanatory Variables -- Appendix...