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We show in a multi-sector, heterogeneous-firm trade model that the effect of tariffs on entry, especially in the presence of production linkages, can reverse the traditional positive optimal tariff argument. We then use a new tariff dataset, and apply it to a 189-country, 15-sector version of...
Persistent link: https://www.econbiz.de/10013010722
Individuals that consume different baskets of goods are differentially affected by relative price changes caused by international trade. We develop a methodology to measure the unequal gains from trade across consumers within countries. The approach requires data on aggregate expenditures and...
Persistent link: https://www.econbiz.de/10013050158
Casual empiricism suggests that additive trade costs, such as quotas, per-unit tariffs, and, in part, transportation costs, are prevalent. In spite of this, we have no broad and systematic evidence of the magnitude of these costs. We develop a new empirical framework for estimating additive...
Persistent link: https://www.econbiz.de/10013078862
This paper uses 68 measures of trade policy and trade liberalization to ask if membership in theWorld Trade Organization (WTO) and its predecessor the General Agreement on Tariffs and Trade (GATT) is associated with more liberal trade policy. Almost no measures of trade policy are significantly...
Persistent link: https://www.econbiz.de/10013308333
, species extinction and industrial pollution were rising. Recently it has been intensified by the creation of the World Trade … hampered by the lack of a common language and also suffered from little recourse to economic theory and empirical evidence. The … international trade. We critically review both theory and empirical work to answer three basic questions. What do we know about the …
Persistent link: https://www.econbiz.de/10013322309
We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying theme of our survey is methodological. We rely on gravity models and demonstrate how they can be used for counterfactual analysis. We highlight how various economic...
Persistent link: https://www.econbiz.de/10013085119
This paper examines the microstructure of import markets and the division of the gains from trade among consumers, importers and exporters. When exporters and importers transact through anonymous markets, double marginalization and business stealing among competing importers lead to lower...
Persistent link: https://www.econbiz.de/10013012693
In a general equilibrium product-cycle model, lower trade barriers increase Southern purchasing power, which lifts long-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated inside firms, which lowers the opportunity cost of innovation,...
Persistent link: https://www.econbiz.de/10013057413
world. But the gains from openness, which includes not only trade but all the other ways through which countries interact … representing 1% of the world's GDP experiences a gain of 41% as it goes from autarky to frictionless trade with the rest of the … interact through trade as well as diffusion of ideas, and then quantifies the overall gains from openness and the role of trade …
Persistent link: https://www.econbiz.de/10012755278
We develop a general equilibrium model of monopolistic competition and trade based on indirectly additive preferences and heterogenous firms. It generates markups independent from destination population but increasing in destination per capita income, as documented empirically. Trade...
Persistent link: https://www.econbiz.de/10012998951