Both India and Pakistan are exporting IT/ITeS/BPO services to USA/EU/UK markets. India has specialized herself as the leading expert in such services exporting services worth of USD 30-35 billion annually. Pakistan with all the necessary demographic and economic factors similar to India lacks...

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...

Exports serve as an engine of economic growth and can potentially help countries come out of poverty and unemployment. However, as the production process is increasingly getting fragmented globally, greater exports no longer imply higher domestic production, as imports of intermediate products...

The fragmentation of international production raises a host of problems in our ability to measure and understand the international economy. Global value chains is one leading approach, but scholars point to several limitations, most prominently aggregating from firm-level observations to...

In particular, the ability to export on time is crucial to explain comparative advantage in intermediate goods. These findings underscore the importance of investing in infrastructure and fostering trade facilitation to boost a country's participation in production networks. Furthermore, we...

Using a micro-level dataset of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of...