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phase-ins of agreements, lagged terms-of-trade effects, reverse causality, various estimation techniques, disaggregation …
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and exchange rate mechanisms. McCallum [1995] found that the US-Canada border led to trade between provinces that is a … puzzle' by applying the theory seriously. We find that national borders reduce trade between the US and Canada by about 44 … of a combination of omitted variables bias and the small size of the Canadian economy. Within-Canada trade rises by a …
Persistent link: https://www.econbiz.de/10012470650
and exchange rate mechanisms. McCallum [1995] found that the US-Canada border led to trade between provinces that is a … puzzle' by applying the theory seriously. We find that national borders reduce trade between the US and Canada by about 44 … of a combination of omitted variables bias and the small size of the Canadian economy. Within-Canada trade rises by a …
Persistent link: https://www.econbiz.de/10013249545
Economic theory suggests including domestic trade flows when estimating structural gravity models. The inclusion of domestic trade flows helps to identify parameters that cannot be estimated with international trade flows alone. The complication is that domestic trade flows can be measured...
Persistent link: https://www.econbiz.de/10013227169
Borders have a sizable negative impact on trade flows. Given the vast number of individual goods potentially traded, this "border effect" could have two possible explanations: (1) less international than domestic trade in the goods that are actually traded between countries ("flow"), or (2)...
Persistent link: https://www.econbiz.de/10001591415
There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade models. This introduction has highlighted the importance of the entry/exit decision of firms in response to changes in trade barriers. However, it is typical in many of these...
Persistent link: https://www.econbiz.de/10009726080
Modern regional trade agreements focus on promoting bilateral exchange mostly by lowering non-tariff barriers to trade. But do existing regional trade agreements actually deliver what they promise? This paper argues that existing results in the literature are upward biased because of measurement...
Persistent link: https://www.econbiz.de/10014487341