Showing 1 - 10 of 261
We investigate the relationship between GDP per capita, trade costs, demand, and income inequality between 1996 and 2011. Specifically we apply the aggregate AIDS-based gravity model as developed in Fajgelbaum and Khandelwal (2016) to a panel of 40 countries to generate a new measure of market...
Persistent link: https://www.econbiz.de/10012453593
market potential exhibits an upward trend across all regions of the world from the early 1930s and that this trend … significantly deviates from the evolution of world GDP. Finally, using exogenous variation in trade-related distances to world …
Persistent link: https://www.econbiz.de/10012455944
In our European Economic Review (2002) paper, we used pre-1998 data on countries participating in and leaving currency unions to estimate the effect of currency unions on trade using (then-) conventional gravity models. In this paper, we use a variety of empirical gravity models to estimate the...
Persistent link: https://www.econbiz.de/10012457134
One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristics, and destination characteristics. A key decision for researchers in...
Persistent link: https://www.econbiz.de/10012479420
Almost Ideal gravity associates zero trade flows with variable and fixed trade cost variation in a flexible demand system. Latent trade shares between non-partners are inferred from the Tobit estimator applied to trade among 75 countries and 25 sectors in 2006. Latent Trade Bias (LTB) is the...
Persistent link: https://www.econbiz.de/10012482496
We develop a multi-sector gravity model with heterogeneous workers to quantify the aggregate and group-level welfare effects of trade. We estimate the model using the structural relationship between China-shock driven changes in manufacturing employment and average earnings across US groups...
Persistent link: https://www.econbiz.de/10012453974
We incorporate trade imbalances into a quantitative model of bilateral trade in manufactures, dividing the world into … welfare would differ in a counterfactual world with all current accounts balancing. Our results indicate that closing the …
Persistent link: https://www.econbiz.de/10012465619
The paper first extends and reconciles recent estimates of the strikingly large effect of national borders on trade patterns. Estimates comparing trade among Canadian provinces with that between Canadian provinces and U.S. states show interprovincial trade in 1988-90 to have been more than...
Persistent link: https://www.econbiz.de/10012472790
This study quantifies the impact of traditional and new age' provisions of preferential trading arrangements (PTAs) on merchandise trade and investment. It does so by estimating gravity models of bilateral trade and investment. It finds that recent and some past PTAs are not as benign as some...
Persistent link: https://www.econbiz.de/10012468534
We develop a simple information-based model of FDI flows. On the one hand, the abundance of intangible' capital in specialized industries in the source countries, which presumably generates expertise in screening investment projects in the host countries, enhances FDI flows. On the other hand,...
Persistent link: https://www.econbiz.de/10012469036