This paper investigates the determinants of comparative advantage in Artificial Intelligence (AI)-intensive industries using a comprehensive dataset of US imports from 68 countries across 79 manufacturing and service industries over the period 1999–2019. Using a novel measure of AI intensity...

This study examines the interplay between trade policy, in particular non-tariff measures (NTMs), and revealed technological comparative advantage (RTA) at the NUTS 2 level as drivers of foreign direct investment (FDI) over time. Combining data from the Orbis database (Bureau Van Dijk), the NTMs...

Deutschland muss seine wirtschaftliche Leistungsfähigkeit in einem schwierigen Umfeld sichern. Der Mangel an Fachkräften, die stagnierende Produktivität und eine schwächelnde Innovationstätigkeit bedrohen Wachstum und Wohlstand. Künstliche Intelligenz (KI) kann ein Schlüssel zur...

This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on...

Do political regimes determine how geopolitics influence international trade? This paper provides an empirical answer to the question by analyzing the joint impact of democracy and geopolitical distance between countries with an augmented gravity model of bilateral trade flows and an extensive...

Traditional gravity models posit an inverse relationship between geographical distance and bilateral trade due to increased transportation costs. However, recent literature suggests that bilateral service trade may increase between two countries located at an appropriate geographical distance....

This study introduces a two-dimensional matrix analysis method that utilizes revealed comparative advantage and revealed comparative disadvantage indices. It aims to clarify the impact of trade remedy measures on beneficiary industries' performance. We compare the effects of these measures...

According to the general consensus in academia, Ricardo's theory of international trade embodies the theory of comparative advantage. The principle of comparative advantage he proposed, based on the model of physical trade and employing comparative cost analysis, holds that comparative advantage...

Based on the sufficient statistics approach developed by Huang and Ottaviano (2024), we show how the state of technology of European industries relative to the rest of the world can be empirically assessed in a way that is simple in terms of computation, parsimonious in terms of data...

Policies that affect t he c ost o f u sing f ossil f uels i n p roduction h ave a complex impact on the economy. In this paper, we focus on the role of these policies for the pattern of comparative advantage through their effect o n p roduction c osts in manufacturing industries. Using data on...

Recent shocks to global value chains and geopolitical tensions have reignited the debate on domestic production of strategic goods and technologies. This paper proposes an analytical framework for identifying and prioritising activities and regions for potential reshoring policies combining...

The existing literature on development and economic diversification finds an inverted-U function between these two variables, whereby economies diversify as they grow up to a point, after which they start specializing. This paper contributes to this literature by investigating the stages of...

In this work, we develop a trade model that explains the pattern of trade between countries based on differences in total factor productivity (TFP) while also accounting for differences in relative factor endowments. The novelty stems from the introduction of production functions derived by...

Currently, international trade has evolved into international production fragmentation captured in GVCs. Countries must enhance intermediate exports in comparative advantage sectors to increase their trade in value-added (TVA) in global production chains. However, traditional measurements of...

Logistics is an essential service for manufacturing because it supports the coordination and integration of global production activities, ultimately reducing costs and improving efficiency. However, it is not clear that the complex structural relationship between logistics and manufacturing...

We show that climate policy can unlock large environmental gains from trade by inducing economies to specialize according to their environmental comparative advantage. We make this point by exploring the effects of a carbon tax in a quantitative trade model. Our main result is that the...

Based on the sufficient statistics approach developed by Huang and Ottaviano (2024), we show how the state of technology of European industries relative to the rest of the world can be empirically assessed in a way that is simple in terms of computation, parsimonious in terms of data...

An einem fehlerhaften Beispiel wird aufgezeigt, dass ein Land nicht in jedem Produkt einem anderen Land komparativ überlegen sein kann. Absolute Kostenvorteile sind in allen Produkten möglich, doch auch das unproduktivere Land besitzt in der Regel mindestens einen komparativen Kostenvorteil...

This paper discusses the experiences resulting from EU's adoption and implementation of a wide variety of policy measures in response to the COVID-19 crisis. These measures included stimulating the relocation and expansion of manufacturing to reduce vulnerability, depending on imports, ensuring...

The active spread of COVID-19 and the resulting containment measures have made it clear that both supply and demand and global production networks are facing unprecedented shocks and disruptions. Accordingly, this has resulted in an urgent need to investigate countries' competitive situation...