The aim of this paper is to explore the role of institutional determinants of international comparative advantage. Starting from a theoretically well founded general equilibrium framework, where specialization depends on relative factor endowments and technological differences, we study the...

This paper focuses on the possible effects of eastern enlargement not only on trade between the entrants and current members, but on the location of production in the enlarged union. The key notion is that of cross-border production sharing, also known as cross-border fragmentation of...

Latin American countries have lost competitiveness in world markets in comparison to China over the last two decades. The main purpose of this study is to examine the causes of this development. To this end an augmented Ricardian model is estimated using panel data. The explanatory variables...

Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...

I propose a method of moments estimator of revealed comparative advantage based on a flexible specification of trade flows that is consistent with a large class of gravity models of international trade. I show that this estimator has many desirable properties. It is theoretically consistent with...

Migration and trade are often linked through ethnic networks boosting bilateral trade. This study uses migration to quantify the importance of Ricardian technology differences for international trade. The framework provides the first panel estimates connecting country-industry productivity and...

Ricardian theories of production often take the comparative advantage of locations in diff erent industries to be uncorrelated. They are seen as the outcome of the realization of a random extreme value distribution. These theories do not take a stance regarding the counterfactual or implied...

Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the...

Can financial institutions and markets enhance the discipline imposed by competitive product markets and thus improve resource allocation in the real economy? We address this question in the context of international trade, using disaggregated product-level data from 71 countries exporting to the...

Ricardian trade theory predicts that countries should produce and export according to their comparative advantage, exporting relatively more in industries in which they can produce at a lower relative cost. Although this is one of the fundamental theories of international trade, it has received...