Using detailed product-level export data for China and a variant of the Antràs and Helpman (2004) model that includes investments in component search, we examine the sectoral determinants of foreign direct investment (FDI) versus foreign outsourcing in export processing trade. We exploit the...

In this paper, we propose a theoretical model to study the effect of income insecurity of parents and offspring on the child’s residential choice. Parents are partially altruistic toward their childrenand will provide financial help to an independent child when her income is low relative to...

This paper offers new insights on a central question in trade and development economics: does increased exposure to foreign competition generate gains in plant productivity? We find that it does. We examine Colombian trade policy from 1977 to 1991, a period during which trade liberalization...