Fratianni, Michele; Marchionne, Francesco - Department of Business Economics and Public Policy, … - 2011
We test the hypothesis of the circular causality between trade costs and degree of economic development using data on … sectoral exports to 188 countries over the period 1995-2004. Provincial trade costs are constructed as the sum of five province … trade costs. These costs are influenced by lagged provincial per capita income and industrial structure. In turn, trade …