Cuñat, Alejandro; Zymek, Robert - 2022
If sectoral trade flows obey structural gravity, countries' bilateral trade imbalances are the result of macro trade … imbalances, “triangular trade”, or pairwise asymmetric trade barriers. Using data for 40 major economies and the Rest of the … World, we show that large and pervasive asymmetries in trade barriers are required to account for most of the observed …