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Almost Ideal gravity associates zero trade flows with variable and fixed trade cost variation in a flexible demand system. Latent trade shares between non-partners are inferred from the Tobit estimator applied to trade among 75 countries and 25 sectors in 2006. Latent Trade Bias (LTB) is the...
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Using traditional Cournot demand concepts, the effect of an increase in export demand on the price and domestic quantity demanded for a given product under different market structures and production cost structures is examined. In general, an increase in the product price will result in a...
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The practice of trade cost measurement faces several challenges related to data quality, methodology and theory; but the major issue is that of data scarcity. Due to these facts both domestic and asymmetric trade costs have been ignored despite being a feature of modern trade models. This paper...
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countries is large, while exports become more important if scale economies in production are large. This paper investigates … empirically the effect of different dimensions of distance on the choice between exports and FDI. We find that different … dimensions of distance affect exports and FDI differently. There is clear evidence of a proximity-concentration trade-off in …
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