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Australia’s external trade is relatively low compared with the size of its economy. Indeed, Australia’s openness ratio … understand Australia’s low openness by analysing the empirical determinants of aggregate country trade. We begin by estimating a … standard gravity model of bilateral trade. Although the model appears to fit the bilateral data very well, it does a relatively …
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Obstfeld and Rogoff (2001) argue that trade costs provide at least part of the explanation for a number of puzzles in … trade costs are associated with correlations associated with three of these puzzles: the Feldstein-Horioka saving …
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. Second, it shows that global trade in non-oil resource commodities can be described by the gravity model of trade. Using this …
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