(especially highly skilled ones), offshore workers who produce intermediate input imports do not. The productivity effect of … offshoring is stronger for developed economies while the substitution effect of immigration is stronger for developing countries …. Furthermore, the productivity effects of immigration and offshoring are stronger when governments impose less restrictions on …

To estimate correctly the effect of variable trade costs on firms’ exports, the gravity equation should control for the … of exporting firms by reporter and partner country. We show that not controlling for the extensive margin of trade … introduces very serious biases in the estimated trade cost coefficients. …

continuously diversify their exports and that cross-sectional patterns can be captured well by a gravity equation. Prior studies …