Working with a mix of panel data on goods and services trade for the OECD for 1994-2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to the panel midpoint, we examine the role of services as inputs in manufacturing, with a particular focus...

This paper investigates the relationship between export market shares and relative unit labour costs using a long panel of twelve manufacturing industries across fourteen OECD countries. We ask two questions: (a) how sensitive are export market shares to changes in relative costs and (b) what...

In the 2X2X2 Heckscher-Ohlin model there exists a one to one relation between relative good prices and relative factor prices. A change in the relative price of one good changes the relative price of the factor used intensively in the production of the good in the same direction. We review this...

The Ricardian model is often considered of limited use and scope for the explanation of trade flows, as it cannot account for various important aspects of real world trade such as innovation goods or intra-industry trade. This is basically due to the fact that the Ricardian model is usually...

Von der Osterweiterung der EU im Jahre 2004 könnte die Exportwirtschaft in Ostdeutschland aufgrund der geographischen Nähe zu den mittel- und osteuropäischen Beitrittsländern besonders stark profitieren. Anhand der Warenexporte nach Polen und Tschechien - jenen Beitrittsländern, die an...

This paper assesses the Euro’s influence upon European trade by estimating two different indicators. The first is the so-called “Rose Effect”, while the second is the “Border Effect”. The former measures how much a country within a currency union trades more with its partners than with...

This paper adds to the understanding of how New Zealand's terms of trade have evolved since 1991. The paper develops a method to decompose the percentage change in the terms of trade into the contributions from different export and import components. The contributions are further decomposed into...

A prevalent feature of the global economy is the relevance of trade in intermediates due to production fragmentation. This phenomenon has led to the revival and development of trade models that include inter-industry relations. A wide variety of Ricardian trade models cope with this feature. In...