Using confidential firm-level data from the United States in 2002, we show that exporting firms charge prices for narrowly defined goods that differ substantially with the characteristics of firms and export markets. We control for selection into export markets using a three-stage estimator. We...

This paper quantifies the gains from openness arising from trade and multinational production (MP). We present a model that captures key dimensions of the interaction between these two flows: Trade and MP are competing ways to serve a foreign market; MP relies on imports of intermediate goods...

This report counter-poses the patterns of trade specialization and trade diversification of two groups of economies the new member states of the European Union, NMS, and the follower countries of the Soviet Union, the NIS (Newly Independent States). It is shown that the NIS export structures are...

We construct a generalized model of finite change whereby exogenous shocks such as international trade or technological change, not only contract, but totally shut down production in some sectors. In such cases even in a competitive structure and in absolute contrast to the conventional wisdom,...

In a Ricardian model with CES preferences and general distributions of industry efficiencies, the sources of the welfare gains from trade can be precisely decomposed into a selection and a reallocation effect. The former is the change in average efficiency due to the selection of industries that...

This article describes and compares the three most popular indices that are used to measure export prices – Wholesale Price Indices, unit value indices, and export price indices. It includes a brief discussion of the methodology used in constructing the different types of price indices and the...

This paper takes a careful look at a recent International Monetary Fund (IMF) Working Paper that claims to find significant gains for liberalization of trade through the World Trade Organization. It is not clear that the reported gains are at all large. The IMF paper shows that multilateral...

Services offshoring is on the rise. Due to recent innovations in communication technologies, many services that used to be non-tradable can be delivered from distance today. Still, German services imports have grown much slower than exports over the past decades, indicating under-exploitation of...

With more and more globalization, international trade has expanded to a large extent. This is also observable for trades in high technology products. India and China have emerged as two major exporters of high technology products in the world today. This paper makes an attempt to understand the...

This paper assesses, using a panel data model, the determinants of Morocco’s exports. Estimates are conducted for 9 different categories of products. The model takes into account observed and non-observed individual heterogeneity. The results show that for most of the groups of exported...