Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The paper is released in order to make the research of CompNet generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the ones of the author(s) and do not necessarily reflect those of the ECB, the ESCB, and of other organisations associated with the Network. Terms of use: Documents in EconStor may AcknowledgementsFinancial help under the Globalisation Investment and Trade in Services (GIST) project, funded by the EU 7th Framework Programme (ITN-2008-211429), is gratefully acknowledged. This work was carried out while I was an intern at the National Bank of Belgium, I thank for the hospitality and the support provided. All views expressed in this paper, as well as the errors, are my own solely and do not necessarily reflect the views of the National Bank of Belgium. This paper has greatly benefited from the suggestions of Michel Beine, Holger Breinlich, Anca Cristea, Frederic Docquier, Chiara Farronato, Martina Lawless, Kalina Manova, Florian Mayneris, Giordano Mion, Mathieu Parenti, Alberto Russo, Ilke Van Beveren and the participants of the many conferences and seminars I have been. Andrea AriuUniversité catholique de Louvain, Belgium; e-mail: andrea.ariu@uclouvain.be AbstractDuring the 2008-2009 crisis trade in goods experienced the deepest decline ever recorded. Surprisingly, trade in services came through the crisis unscathed and some service categories carelessly stuck to their growth paths. Using firm-productdestination exports for Belgium, we show that the particular resilience of services is explained by a significantly lower elasticity to demand in export markets. More specifically, services exports tend to decline on average 5% less than exports of goods following a 1% decrease in GDP growth in destination countries. Most of this effect is accounted for by business services, it is more pronounced with respect to durables than to consumable products and it is stronger for OECD exports than for non-OECD. In terms of economic magnitude, if goods had the same elasticity to GDP growth of services, they would have decreased of about half. Conversely, if services had the same elasticity of goods, their fall would have been more than thrice as much. Moreover, it is a widespread phenomenon, since all OECD countries experienced the same patterns. Therefore, understanding the causes of this peculiar resilience of service represents a very important research and policy...

A B S T R A C TThis paper shows that governance quality promotes positive net inflows of high-skilled migrants. Home and foreign institutions influence both inflows and outflows, thus determining the net flows of college graduate migrants. Therefore, institutions can affect human capital through migration flows. Our empirical strategy is based on a random utility model from which we derive the net balance of migrants and an exclusion restriction to control for the selection of migrants. We test the predictions of the model using comprehensive matrices of migration by education level and a synthetic indicator of governance quality. We account for endogeneity concerns by means of an instrumental strategy and we disentangle the effect of the quality of domestic and foreign institutions on both inflows and outflows.

In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to design our econometric strategy and use the estimated model for counterfactual analysis. In particular, we look at the quantitative impact of reductions in goods and services barriers between the US and the EU. Our findings have important implications for the design of trade policy. They suggest that a liberalization of service trade can have quite direct and sizable effects on goods trade and vice-versa, and that jointly liberalizing goods and services trade brings about substantial complementarities.