The purpose of this paper is twofold. First, we explore empirically to what extent the determinants of trade in … services differ from those of trade in goods. Second, by the use of instrumental variables, we explore potential … complementarities between bilateral trade in goods and bilateral trade in services. Using a gravity framework, the main results show …

-North intermediate goods trade framework. International product market integration leads to redistribution of market shares from 'weak … restrictions which prevent the economy from reaching a first best allocation. The positive welfare effects of opening to trade are … integration. -- employment protection ; firing margin ; trade in intermediate goods ; labor market turnover ; revenue risk …