This paper studies the determinants of aggregate bilateral trade in two broad sectors, manufacturing and services. We build a unified theoretical framework that incorporates a demand bias towards services and a difference in the degree of national product differentiation between the two sectors....

This paper studies the determinants of aggregate bilateral trade in two broad sectors, manufacturing and services. We build a unified theoretical framework that incorporates a demand bias towards services and a difference in the degree of national product differentiation between the two sectors....

This paper studies how and why the bilateral trades in manufacturing and services differ in their response to changes in the determinants—both theoretically and empirically. We build a unified theoretical framework that incorporates a demand bias towards services and a difference in the degree...