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The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies' choice between processing and ordinary trade –...
Persistent link: https://www.econbiz.de/10012994784
Many studies have found that international borders represent large barriers to trade. But how do international borders compare to domestic border barriers? We investigate international and domestic border barriers in a unified framework. We consider a unique data set of exports from individual...
Persistent link: https://www.econbiz.de/10013095339
this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which … on border effects in domestic and international trade. Our theory shows that larger countries are systematically …. Even if no border frictions exist at the micro level, gravity estimation on aggregate data can still produce large border …
Persistent link: https://www.econbiz.de/10012991938
We develop a dynamic model of intermediate goods trade in which the pattern and the extent of intermediate goods trade are endogenous. We consider a small open economy whose final good production employs an endogenous array of intermediate goods, from low technology (high cost) to high...
Persistent link: https://www.econbiz.de/10013001169
This paper develops an open economy model with heterogeneous final goods producers who simultaneously choose whether to export their goods and whether to use imported intermediates. The model highlights mechanisms whereby import policies affect aggregate productivity, resource allocation, and...
Persistent link: https://www.econbiz.de/10012772491
-proportions trade theory, Heckscher-Ohlin forces operate at the within-industry level, leading to endogenous variation in skill …
Persistent link: https://www.econbiz.de/10013012534
We consider a monopolistic supplier’s optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...
Persistent link: https://www.econbiz.de/10013315795
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/10012900279
One of the oldest and largest literatures in empirical economics is concerned with the estimation of demand and supply … structure of the data. This chapter is concerned with a host of issues that arise with the estimation of such models, respecting … their panel econometric generic structure. The issues covered range from the estimation of double-indexed versus higher …
Persistent link: https://www.econbiz.de/10013058498
phase-ins of agreements, lagged terms-of-trade effects, reverse causality, various estimation techniques, disaggregation …
Persistent link: https://www.econbiz.de/10013315671