Helpman and Krugman (1985) suggest that countries with large domestic markets export in scale-intensive sectors. Beck (2003) and Manova (2013) show that financial institutions matter for comparative advantage since sectors differ in their dependence on external capital. Cuhat and Melitz (2012) and Tang (2012) provide evidence that labour market regulations also have an impact on comparative advantage in sectors that exhibit high volatility in sales or depend on sector-specific skills.