This paper investigates the role played by firms’ managerial skills in the heterogeneous reaction of exporters to common exogenous changes in their international competitiveness (here captured by changes in the real exchange rate). Relying on a simple theoretical framework, we show that firms...

The steady decline in the share of industry in total employment currently seems to be accelerated by competition from low wage countries, which depresses international prices for manufactured products and is being translated into offshore outsourcing and defensive innovation. In order to fully...

International trade flows of cultural goods have grown very rapidly over the last decades and their liberalization will be one of the important issues of future multilateral trade negotiations. Despite these stakes, cultural flows have, to date, not been much studied by trade economists. In this...

This paper develops a dynamic model of cross-border M&A activity. We show that foreign firms will be relatively more attracted to targets in the domestic country that had high productivity levels several years prior to acquisition, but then suffered a negative productivity shock (i.e., cherries...