While it is widely accepted that there are adjustment costs associated with the reallocation of resources in response to freer trade, in most models these costs are assumed to be very small. However, more recent evidence is casting doubt on this assumption. This paper develops a unique dataset...

Located at the heart of global value chains (GVCs), intangibles are documented to have a high and rising value capture, and to depend on both agglomeration economies and global connectedness for their performance. In this paper, we study how the distinct nature of intangibles require countries...