The Export Potential of Services

Exports of services grew from $1.5 trillion in 2000 to $4.9 trillion in 2016, outpacing trade in goods. Consequently, interest in understanding the drivers and consequences of services trade has grown, yet disaggregated services data remains largely unavailable (see Figure 1). While developed countries mostly report their trade…

Fire Sales and Debt Maturity

**Abstract:** How does debt maturity structure affect fire sales? By introducing debt maturity in a Fisherian deflation model, I demonstrate how it could trigger financial crises. Using a stock-flow analysis, I show that long-term debt could alleviate the risk of current binding collateral constraint, but an excessive reliance on long-term…

Offshoring: What Pushes Workers Out of the Game? Evidence from Global Value Chains

Over the past decades, two developments critically influenced the reputation of offshoring. Encouraged by declining transportation and coordination costs, entrepreneurs increasingly unbundled production processes and relocated different activities across countries. At the same time, high income countries experienced a profound decline in the employment of low skilled manufacturing workers. With…

The Percolation of Knowledge across Space

Despite considerable improvements in communication technologies in the last couple of decades, patent citation flows still decrease with distance. We provide evidence that this spatial decay of knowledge flows can be attributed to the spatial clustering of innovators' networks, through which knowledge percolates. Our contribution is twofold. Firstly, we provide…