It has been hypothesized that technical progress will erode the competitiveness of the manufactured exports of developing countries. The paper tests two assumptions underlying this hypothesis. First, limited technological competence might prevent developing countries from competing effectively...

Making use of considerably improved measures of infrastructure, we assess the impact of infrastructure on bilateral trade for a panel of 37 developed and emerging economies during the period 1995-2011. We find significant and non-linear effects of overall infrastructure and infrastructure in...

This paper estimates the effects of offshoring on labour market inequalities between skill groups based on German industry level data from 1995 to 2007. Our main findings are the following: First, offshoring is on average biased in favour of high-skilled employees and in disfavour of low-skilled...

This paper analyzes the role of institutional distance in the establishment of domestic linkages by multinational enterprises in a cross- section of 19 Sub- Saharan countries. Investors' familiarity with formal and informal procedures in the host country lowers uncertainty and facilitates...

Our empirical estimations indicate that aid-for-trade granted by OECD donors strengthens the trade relations of recipient countries with other developing countries. By focusing on South-South trade we mitigate endogeneity concerns that have plagued analyses of trade between recipients and donors...

We construct comprehensive and comparable indices on the most relevant components of economic infrastructure. An unobserved components model is employed to cover the largest possible number of developing and developed countries over the period 1990-2010. We map major findings from the new...

Economic sanctions are a frequent instrument of foreign policy. In a diplomatic conflict, they aim to elicit a change in the policies of foreign governments by damaging their economy. However, sanctions are not costless for the sending economy, where domestic firms involved in business with the...

We investigate the export-enhancing effect of foreign workers at the firm level. We first develop a theoretical framework of heterogeneous firms, assuming that foreign workers allow for productivity gains and convey valuable information on foreign markets. We illustrate that foreign workers...

Using a new, global data base covering the years 1950 to 2015, we study the impact of sanctions on international trade and welfare. We make use of the rich dimensionality of our data and of the latest developments in the structural gravity literature. Starting with a broad evaluation by sanction...

Do the U.S. have a current account surplus or a deficit with the EU? Since 2009, official sources disagree: The U.S. Department of Commerce claims a consistent U.S. surplus while Eurostat reports the opposite. International transactions are notoriously difficult to measure accurately, but the...