We show that it is possible to estimate the cost of protection in terms of the trade loss for the protected country using a widely accepted and theory-based specification of the gravity model in combination with descriptive trade policy indicators. Data and implementation requirements are lower...

We examine linkages between aggregate household income, distribution of that income, and aggregate cross-country expenditure patterns. We are able to decompose income effects into international income dispersion effects (from variations in average income) and national income dispersion (income...

We examine linkages between aggregate household income, distribution of that income, and aggregate cross-country expenditure patterns. We are able to decompose income effects into international income dispersion effects (from variations in average income) and national income dispersion (income...

This paper attempts to reconcile the often inconclusive evidence on the role of FDI in the process of economic development by taking into account the heterogeneity both among industries and among countries. Using a comparable database at the industry level for 35 countries in the OECD, Asia and...

This paper studies the role played by different trade barriers (transport costs, customs and currency) in the evolution of Spanish imports during the <italic>First Globalization</italic> (1870-1913). Through the estimation of several gravity equations with panel data analysis, we obtain the elasticities of...

The case of Spain in the first globalization illustrates how the gravity equation, as a tool from which to derive a comprehensive measure of trade costs, can be used to test the soundness of alternative direct measures of specific costs.