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The determinants of trade costs : a random coefficients approach

Egger, Peter; Průša, Jan - 2014

This paper assesses whether the sensitivity of bilateral trade volumes to various trade cost factors is constant or varies across countries. It utilizes a random coeffcients model and analyses a cross-sectional sample of bilateral trade data for 96 countries in 2005. We expect the elasticity of...

Persistent link: https://www.econbiz.de/10010371278

Disentangling frictions across the world : markups versus trade costs

Heid, Benedikt; Stähler, Frank - 2024

We develop a structural framework that allows us to quantify the evolution of aggregate bilateral trade costs and markups over time. With minimal assumptions, we can disentangle aggregate markup and trade cost changes from observed changes in trade flows. We apply our method to trade data...

Persistent link: https://www.econbiz.de/10015081337

Trade costs, trade balances and current accounts : an application of gravity to multilateral trade

Fazio, Giorgio (contributor); MacDonald, Ronald (contributor) - 2005

In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...

Persistent link: https://www.econbiz.de/10003120614

Unlocking new methods to estimate country-specific trade costs and trade elasticities

Freeman, Rebecca; Larch, Mario; Theodorakopoulos, Angelos; … - 2021

We propose new methods to identify the full impact of country-specific characteristics on bilateral trade flows within the framework of ‘the new quantitative trade model.' We complement theory with a simple two-stage estimating procedure, and offer a proof of concept by quantifying the impact...

Persistent link: https://www.econbiz.de/10012669805

Shipment frequency of exporters and demand uncertainty

Békés, Gábor; Fontagné, Lionel; Muraközy, Balázs; … - 2014

Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export … well as inventory and per shipments costs. Using a cross section of monthly firm-product-destination level French export … uncertainty by reducing their sales and, for a given export volume, by reducing their number of shipments and increasing their …

Persistent link: https://www.econbiz.de/10010338670

Gravity, distance, and international trade

Baier, Scott L.; Kerr, Amanda; Yotov, Yoto V. - 2017

We review and interpret the main theoretical developments in the gravity literature from its very early, a-theoretical applications to the latest structural contributions. We also discuss challenges and implement methods to estimate empirical gravity equations. We finish with a presentation and...

Persistent link: https://www.econbiz.de/10011611143

Multimarket linkages, cartel discipline and trade costs

Agnosteva, Delina; Syropoulos, Constantinos; Yotov, Yoto V. - 2017

We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....

Persistent link: https://www.econbiz.de/10011781965

Is the international border effect larger than the domestic border effect? : evidence from U.S. trade

Coughlin, Cletus Charles; Novy, Dennis - 2009

consider a unique data set of exports from individual U.S. states to foreign countries and combine it with trade flows within …

Persistent link: https://www.econbiz.de/10003902081

Trade flows and trade specialisation : the case of China

Caporale, Guglielmo Maria; Sova, Anamaria; Sova, Robert - 2015

in China's trade patterns. The analysis is based on both economic indicators and the estimation of a gravity model, and … capital- and technology-intensive exports. …

Persistent link: https://www.econbiz.de/10010483599

Currency unions, trade, and heterogeneity

Chen, Natalie; Novy, Dennis - 2018

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect of currency unions on international trade. While we...

Persistent link: https://www.econbiz.de/10011867116