Showing 1 - 9 of 9
The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a...
Persistent link: https://www.econbiz.de/10011515400
We propose a simple and flexible econometric approach to quantify ex-ante the "deep" impact of trade liberalization and the "hard" effects of protection with the empirical structural gravity model. Specifically, we argue that the difference between the estimates of border indicator variables for...
Persistent link: https://www.econbiz.de/10012599928
We challenge the common practice of estimating gravity equations with time-interval data in order to capture dynamic-adjustment effects to trade-policy changes. Instead, we point to a series of advantages of using consecutive-year data recognizing dynamic-adjustment effects. Our analysis reveals...
Persistent link: https://www.econbiz.de/10012287795
We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral trade within a theoretically-consistent empirical gravity model. Specifically, we argue that structural gravity estimations should be performed with data that include not only...
Persistent link: https://www.econbiz.de/10011750135
We develop a simple estimation procedure for general equilibrium (GE) comparative static analysis of gravity models. Non-linear solvers of estimated models are replaced by (constrained) regressions. Applied economists can more readily generate results, with more intuition about the working of...
Persistent link: https://www.econbiz.de/10011384362
Combining two new datasets on sanctions and agricultural trade and implementing step-by-step the latest developments in the empirical structural gravity literature, we investigate the effects of sanctions on international trade of agricultural products. We find that trade sanctions have been...
Persistent link: https://www.econbiz.de/10012668821
We build on the latest developments in the structural gravity literature to quantify the partial and general equilibrium effects of GATT/WTO membership on trade and welfare. Using an extensive database covering manufacturing trade for 186 countries over the period 1980-2016, we find that the...
Persistent link: https://www.econbiz.de/10012287974
In view of the deferred start of negotiations for the modernization of the Customs Union between the EU and Turkey (CU-EUT), we look back and analyse the ex post trade consequences of the CU-EUT. Employing up-to-date econometric best practices for regional integration agreements, we quantify...
Persistent link: https://www.econbiz.de/10011966895
We quantify the relationships between deep trade liberalization and foreign direct investment (FDI). To this end, we focus on the effects of Deep Trade Agreements (DTAs), and we rely on a structural framework that simultaneously enables us to (i) estimate the direct impact of DTAs on FDI, (ii)...
Persistent link: https://www.econbiz.de/10013384905