Baier, Scott L.; Bergstrand, Jeffrey H.; Feng, Michael - In: Journal of International Economics 93 (2014) 2, pp. 339-350
One of the main policy sources of trade–cost changes is the formation of an economic integration agreement (EIA), which potentially affects an importing country's welfare. This paper: (i) provides the first evidence using gravity equations of both intensive and extensive (goods) margins being...