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in Mexico. While some results are obtained from Johansen’s VECM model, most of the analysis is carried out within an … variations in the real exchange rate has fallen over time, presumably because of the rising share of maquila in Mexico’s export … results are briefly discussed, making reference to the possible external constraint on Mexico’s economic growth …
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We propose new methods to identify the full impact of country-specific characteristics on bilateral trade flows within the framework of ‘the new quantitative trade model.' We complement theory with a simple two-stage estimating procedure, and offer a proof of concept by quantifying the impact...
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Estimates of the trade elasticity based on actual trade policy changes are scarce, and the few that exist are all over the place. This paper offers a setting where an exogenous increase in a border tax can be used to estimate the trade elasticity. It shows theoretically and empirically that if...
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