This article argues that trade in certain services has a specific feature that does not necessarily apply to goods. In those services, the production process ends in the country where they are eventually consumed (i.e. in the importing country). Hence, we propose that services trade must use...

Using a dataset of 104 countries over a period from 1966 to 2004, this paper analyses the relevance of country specific shocks for income volatility in open economies. We show that exposure to country specific shocks has a positive and significant impact on GDP volatility. In particular, we find...