In summer 2007, the US subprime crisis emerged and economic growth in industrialised countries started to slow down. The situation deteriorated after the default of Lehman Brothers in September 2008 and despite massive government interventions, the United States and most European countries slid...

How do trade patterns change after an external shock such as an economic crisis, and is this shift structural? This paper uses a Difference-in-Difference (DID) approach to investigate whether services trade became more digital after the Global Financial Crisis (GFC) in 2008. It finds that the...