This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is...

Contents -- I. DEFINING THE PROBLEM -- II. METHODOLOGY -- III. RELATIONSHIP TO THE LITERATURE -- IV. EMPIRICAL IMPLEMENTATION -- V. RESULTS -- VI. SENSITIVITY ANALYSIS -- VII. SUMMARY AND CONCLUSIONS -- References