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What drives globalization today and in the past? We employ a new micro-founded measure of bilateral trade costs based on a standard model of trade in differentiated goods to address this question. These trade costs gauge the difference between observed bilateral trade and frictionless trade....
Persistent link: https://www.econbiz.de/10012466059
This paper surveys the measurement of trade costs --- what we know, and what we don't know but may usefully attempt to find out. Partial and incomplete data on direct measures of costs go together with inference on implicit costs from trade flows and prices. Total trade costs in rich countries...
Persistent link: https://www.econbiz.de/10012468213
Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; cross-sectional evidence indicates that trade stimulates output. This paper estimates the effect that currency union has, via trade, on output per capita. We use economic and geographic data for over 200...
Persistent link: https://www.econbiz.de/10012470886
A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international trade. The panel data set used includes bilateral observations for five years spanning 1970 through 1990 for 186 countries. In this data set, there are over one hundred...
Persistent link: https://www.econbiz.de/10012471350
frictions in production and distribution of a many country world. The starting point is the international incidence of … reduce sectoral skill premia. Bigger sellers' incidence by country (sector) reduces equilibrium shares of world (national …
Persistent link: https://www.econbiz.de/10012464007
This paper studies empirically the effects of financial crises on international trade. The major findings are that banking crises had a negative impact on imports but a positive impact on exports in the short term, whereas currency crises decreased imports in the short term and stimulated...
Persistent link: https://www.econbiz.de/10012468522
merchandise trade and investment. It does so by estimating gravity models of bilateral trade and investment. It finds that recent … explicitly for whether the trade and investment effects are significantly different after PTA formation than before accounts for … less favourable finding in this study. It is also possible for PTAs to have adverse effects on investment flows. If …
Persistent link: https://www.econbiz.de/10012468534
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/10012469358
This paper estimates the effect on international trade of multilateral trade agreements: the World Trade Organization …
Persistent link: https://www.econbiz.de/10012469436
This paper estimates the effect of sovereign debt renegotiation on international trade. Sovereign default may be associated with a subsequent decline in international trade either because creditors want to deter default by debtors, or because trade finance dries up after default. To estimate the...
Persistent link: https://www.econbiz.de/10012469862