equations, trade is more sensitive to trade costs if the exporting country only provides a small share of the destination … country's imports. As a result, trade costs have a heterogeneous impact across country pairs, with some trade flows predicted … modest or indistinguishable from zero. -- translog ; trade costs ; gravity ; currency union ; monopolistic competition …

"We use a new measure of total trade costs at the bilateral country level to examine the change in international trade … integration between 1870 and 1913. Trade costs are lowest amongst the most developed countries and highest in the peripheral and … richest countries. Core-periphery dyads saw the fastest declines. We sort the determinants of trade costs into four main …