Miklós Koren

Central European University
Department of Economics and Business
Nádor u. 9, 1051
Budapest Hungary

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliations: Central European University and CERS-HAS and CEPR

NBER Working Papers and Publications

August 2015Diversification through Trade
with Francesco Caselli, Milan Lisicky, Silvana Tenreyro: w21498
A widely held view is that openness to international trade leads to higher GDP volatility, as trade increases specialization and hence exposure to sector-specific shocks. We revisit the common wisdom and argue that when country-wide shocks are important, openness to international trade can lower GDP volatility by reducing exposure to domestic shocks and allowing countries to diversify the sources of demand and supply across countries. Using a quantitative model of trade, we assess the importance of the two mechanisms (sectoral specialization and cross-country diversification) and provide a new answer to the question of whether and how international trade affects economic volatility.

Published: Francesco Caselli & Miklós Koren & Milan Lisicky & Silvana Tenreyro, 2020. "Diversification Through Trade*," The Quarterly Journal of Economics, vol 135(1), pages 449-502. citation courtesy of

June 2014Administrative Barriers to Trade
with Cecilia Hornok
in NBER International Seminar on Macroeconomics 2014, Richard Clarida, Jeffrey Frankel, Francesco Giavazzi, and Hélène Rey, organizers

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