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Determinants of India's Software Exports and Goods Exports

The Review of Economics and Statistics 2005 87(4), 776-780
Recent export experience of some large, emerging economies has raised important questions about the trade determinants of the modern-services-driven sectors and the goods-production-driven sectors. In our empirical analysis of the determinants of Indian exports of software services and of the total Indian goods exports, we raise the following questions: How (dis)similar is the performance of the Indian exports of software from the determinants of India's total exports of goods? Are such differences significant? Is the pattern of the performance of the determinants stable over time? Our findings concerning the effects of size, distance, linguistic connections, and trade-facilitating networks enable us to make some important inferences of policy relevance.

Carry-Along Trade

Review of Economic Studies 2019 86(2), 526-563 open access
Large multi-product firms dominate international trade flows. Using novel linked production and export data at the firm-product level, we find that the overwhelming majority of manufacturing firms export products that they do not produce. Three quarters of the exported products and 30% of export value from Belgian manufacturers are in goods that are not produced by the firm, so-called Carry-Along Trade (CAT). The number of CAT products is strongly increasing in firm productivity while the number of produced products that are exported is weakly increasing in firm productivity. We propose a general model of production and sourcing at multi-product firms and explore new demand- and supply-side modelling features capable of generating predictions consistent with the empirical findings. Export price data and company interviews offer suggestive evidence for the presence of demand-scope complementarities.