Giovanni, Julian di; Levchenko, Andrei A. - Research Seminar in International Economics, University … - 2009
macroeconomic policies such as barriers to entry or trade liberalization. Using a multi-country model of production and trade in … Zipf's Law, the welfare impact of the extensive margin of trade -- newly imported goods -- vanishes. The extensive margin … of imports accounts for only about 3.5% of the total gains from a 10% reduction in trade barriers in our model. This is …