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In the cross section of countries, there is a strong positive correlation between trade and income, and a negative …) identification strategy, and exploit countries' exogenous geographic characteristics to estimate the causal effect of trade on income … and inequality. Our cross-country estimates for trade's impact on real income are consistently positive and significant …
Persistent link: https://www.econbiz.de/10011763524
markets, we demonstrate a significant causal role of market potential in driving global income growth over this period …
Persistent link: https://www.econbiz.de/10012910940
markets, we demonstrate a significant causal role of market potential in driving global income growth over this period. …
Persistent link: https://www.econbiz.de/10011882291
This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern - horizontal versus vertica l- within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture trade...
Persistent link: https://www.econbiz.de/10010371905
Tepid trade growth since the 2008/2009 global financial crisis (GFC) has been partly attributed to sluggish demand from developed countries. However, data reveals that developing countries play a bigger role in holding back trade growth, while developed countries show quite robust import growth....
Persistent link: https://www.econbiz.de/10011579713
Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical framework for the application of the gravity model jointly to services trade and commercial...
Persistent link: https://www.econbiz.de/10009239052
Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which initially symmetric micro regions are combined to form...
Persistent link: https://www.econbiz.de/10011458028
It has been argued that a depletable resource owner might optimally increase near-term supply in response to environmental policies promoting the development of alternative resources, which might render climate policy ineffective or even counterproductive. This paper empirically confirms this...
Persistent link: https://www.econbiz.de/10010498602
Many studies have found that international borders represent large barriers to trade. But how do international borders compare to domestic border barriers? We investigate international and domestic border barriers in a unified framework. We consider a unique data set of exports from individual...
Persistent link: https://www.econbiz.de/10013134189
We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selection into trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting firms takes a gravity form, such that the extensive margin is also affected by...
Persistent link: https://www.econbiz.de/10013085999