Recent theoretical models predict gains from international trade coming from intra-industryreallocations, due to a firm selection effect. In this paper we answer two related questions. First, whatis the magnitude of this selection effect, and how does it compare to that of intra-national trade...

In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from...

We discuss how standard computable equilibrium models of trade policy can be enriched with selection effects without missing other important channels of adjustment. This is achieved by estimating and simulating a partial equilibrium model that accounts for a number of real world effects of trade...