Gamberoni, ElisaLanz, RainerPiermartini, Roberta2012-03-192012-03-192010-11-01https://hdl.handle.net/10986/3971This paper shows that the institutional environment and the ability to export on time are sources of comparative advantage as important as factors of production. In particular, the ability to export on time is crucial to explain comparative advantage in intermediate goods. These findings underscore the importance of investing in infrastructure and fostering trade facilitation to boost a country's participation in production networks. Furthermore, the paper contributes to the so-called "distance puzzle" by showing that the increasing importance of distance over time is in part driven by trade in intermediate goods.CC BY 3.0 IGOAGRICULTUREAIRAIRPORTSBENCHMARKBILATERAL TRADECAPITAL GOODSCAPITAL PER WORKERCAPITAL STOCKCARCARRIERSCERTAIN EXTENTCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSUMERSCURRENCYDEVELOPING COUNTRIESDIVISION OF LABORECONOMIC ANALYSISECONOMIC DEVELOPMENTECONOMIC RESEARCHELASTICITYELASTICITY OF TRADEEMPIRICAL ANALYSISEMPIRICAL STUDIESEND USEEQUILIBRIUM THEORYEXPORT SHAREEXPORTSFACTOR ENDOWMENTSFACTORS OF PRODUCTIONFINAL GOODSFREIGHTGENERAL EQUILIBRIUMGRAVITY MODELGRAVITY MODELSHUMAN CAPITALINDUSTRY TRADEINTERMEDIATE GOODSINTERMEDIATE IMPORTSINTERMEDIATE INPUTSINTERNATIONAL ECONOMICSINTERNATIONAL PRODUCTIONINTERNATIONAL TRADEMOTOR VEHICLESOUTSOURCINGPATTERN OF TRADEPATTERNS OF TRADEPOLITICAL ECONOMYPROPERTY RIGHTSQUALITY OF TRANSPORTRAILRAIL NETWORKRAILROADSROADRUNWAYSSKILLED LABORSOURCINGSPECIALIZATIONTARIFF DATATHEORETICAL MODELSTRADE BARRIERTRADE COSTSTRADE FACILITATIONTRADE FLOWSTRADE PATTERNSTRADE POLICYTRADE STRUCTURETRADE VOLUMETRADE VOLUMESTRANSITTRANSPORT COSTSTRANSPORT INFRASTRUCTURETRUEVALUE OF EXPORTSVERTICAL SPECIALIZATIONVOLUME OF TRADEWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5482