The trade-specialization nexus

In a new paper with Lu Zhang entitled "Room to Move: Why Some Industries Drive the Trade-Specialization Nexus and Others Do Not", we provide an empirical micro foundation for what is generally analyzed as a macro phenomenon: the trade-specialization nexus. We follow Melitz (Econometrica, 2003), and argue that industries need ’room to move’ in order for increasing trade openness to translate into increased specialization.

Since the paper contains a lot (a lot!) of details, presenting it was far from easy. When the paper was a finalist for Aalto Business School's "That's Interesting" award, we decided to do something different. The result you can see below :-).