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The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a...
Persistent link: https://www.econbiz.de/10012984506
The objective of this manuscript is to serve as a practical guide for estimations with the structural gravity model. After a brief review of the theoretical foundations, we summarize the main challenges with gravity estimations and we review the solutions to address those challenges. Then, we...
Persistent link: https://www.econbiz.de/10013315492
The gravity equation is the workhorse model for analysis of bilateral trade flows. Despite solid theoretical foundations and clear gains from theory-consistent policy analysis, there are still gaps between gravity theory and empirics. This paper focuses on domestic trade flows, and I argue that...
Persistent link: https://www.econbiz.de/10013228864
We investigate the implications of EU non-tariff barriers in the form sanitary and phyto-sanitary (SPS) measures and technical barriers to trade (TBT) on gender relations in the agricultural labour market between 1995 and 2012. Our results indicate that women are disproportionately disadvantaged...
Persistent link: https://www.econbiz.de/10011763897
Three years ago, very few economists would have imagined that one of the newest and fastest growing research areas in international trade is the use of quantitative trade models to estimate the economic welfare losses from dissolutions of major countries' economic integration agreements (EIAs)....
Persistent link: https://www.econbiz.de/10012026353
domestic products (GDPs) account for 36 percent of world GDP and whose mutual trade accounts for approximately 24 percent of … world trade. As for most proposed free trade agreements (FTAs), trade economists have provided ex ante computable general …
Persistent link: https://www.econbiz.de/10011764996
Persistent link: https://www.econbiz.de/10012432841
For a long time globalization could be seen everywhere but in gravity estimates. We offer evidence how globalization affects manufacturing trade over the period 1986-2006 and show that, on average, the effect of distance has fallen whereas the effects of proximity and regional trade agreements...
Persistent link: https://www.econbiz.de/10011615830
On the eve of its 60th anniversary, the gravity model of trade is a 'celebrity', due to its intuitive appeal, solid theoretical foundations, and remarkable empirical success. Yet, many economists still view gravity simply as an intuitive but naive reduced-form estimating equation and apply it...
Persistent link: https://www.econbiz.de/10013177618
The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington CES gravity model, as a...
Persistent link: https://www.econbiz.de/10011509083