Edwards, T. Huw (2006) Measuring global and regional trade integration in terms of concentration of access. Working Paper. University of Warwick. Centre for the Study of Globalisation and Regionalisation, Coventry.

Preview

PDF WRAP_Edwards_wp20606.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (211Kb)

Abstract

I apply concentration measures from the inequality literature - the Lorenz curve and Gini coefficient - to the measurement of global and regional integration, and show that these can be derived from the theoretical gravity model in the presence of unequal costs of access for firms from different locations to a particular market. Overall, comparing 9 economies, I find that the USA is the most globalised on these measures, and India and China are the least globalised. The smaller EU economies, which are very open on standard measures, should probably be viewed as regionalised rather than globalised.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HF Commerce J Political Science > JZ International relations
Divisions:	Faculty of Social Sciences > Centre for the Study of Globalisation and Regionalisation
Library of Congress Subject Headings (LCSH):	Globalization -- Economic aspects, Regionalism (International organization), International trade, Statistics
Series Name:	Working papers (University of Warwick. Centre for the Study of Globalisation and Regionalisation)
Publisher:	University of Warwick. Centre for the Study of Globalisation and Regionalisation
Place of Publication:	Coventry
Date:	May 2006
Number:	No.206
Number of Pages:	32
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
References:	[1] Anderson, J.E. and E.Van Wincoop (2003): �Gravity with Gravitas: a Solution to the Border Puzzle.� American Economic Review, March 2003, 93, 170-192. [2] Atkinson, A.B. (1983): �The Economics of Inequality�, Oxford, Clarendon, 1983. [3] Baldwin, R.E. and A.J. Venables (1995): �Regional Economic Integration.� In Gene M. Grossman and Kenneth Rogo¤ (eds) Handbook of International Economics, Vol. 3. pp 1597-1644, Elsevier, Amsterdam. [4] Bergstrand, J.H. (1989): �The Generalised Gravity Equation, Monopolistic Competition and the Factor- Proportions Theory of International Trade�, Review of Economics and Statistics 71 pp 143-153. [5] Brenton, P., J.Sheehy and M.Vancauteren (2001): �Technical Barriers to Trade in the EU: Data, Trends and Implications for Accession Countries�. Journal of Common Market Studies, 39, 241-260. [6] Centre for the Study of Globalisation and Regionalisation, Warwick (2005): �Globalisation Index�. http://www2.warwick.ac.uk/fac/soc/csgr/index/ [7] Deardor¤, A. (1984): �Testing trade theories and predicting trade �ows�in : R. W. Jones & P. B. Kenen (ed.) �Handbook of International Economics�, chapter 10, pages 467-517, Elsevier,1984. [8] Deardor¤, A. (1998): �Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?� in J.A.Frankel (ed): The Regionalisation of the World Economy, University of Chicago Press. [9] Devereux, M., Gri¢ th, R. and Simpson, H. (2004): �The geographic distribution of production activity in the UK�, Regional Science and Urban Economics, v. 34, iss. 5. 533-64, September 2004. [10] Dixit, A., and Stiglitz, J.E. (1977): �Monopolistic Competition and Optimum Product Diversity.�Amer- ican Economic Review, 67, pp 297-308. [11] Edwards, T.H. (2005): �Implicit Trade Costs and the European Single Market�. Loughborough Economics Discussion Paper ERP05-04, May 2005. [12] Hillberry, R.(1999): �Explaining the Border E¤ect: What Can We Learn from Disaggregated Commodity Flow Data�. Indiana University Graduate Students Economics Working Paper Series 9802. [13] Kearney, A.T. (2003): �Foreign Policy Magazine Globalization Index�. http://www.atkearney.com/shared_res/pdf/Measuring_Globalization_S.pdf [14] Krugman, P. (1979): �Increasing Returns, Monopolistic Competition and International Trade�; Journal of International Economics, 9: 469-79. [15] Krugman, P.R. (1991): �Geography and Trade.� Leuven University Press, Belgium. [16] Lockwood, B. (2004): �How Robust is the Foreign Policy/Kearney Globalisation Index?�: The World Economy, Volume 27 Page 507 - April 2004. [17] Lockwood, B. and Michela Redoano, (2005), �The CSGR Globalisation Index: an Introductory Guide�, Centre for the Study of Globalisation and Regionalisation Working Paper 155/04, Warwick, UK. [18] McCallum, J. (1995): �National Borders Matter: Canada-US Regional Trade Patterns.�American Eco- nomic Review, 85: 615-23. [19] Ogwang, T. (2000): �A Convenient Method of Computing the Gini Index and its Standard Error�: Oxford Bulletin of Economics and Statistics, 62, 1, 2000. [20] Riezman, R., J.Whalley and S.Zhang (2005): �Metrics capturing the degree to which individual countries are globalized�, CESinfo working paper 1450, April 2005. [21] Tre�er, D. (1995): �The Case of the Missing Trade and Other Mysteries.�American Economic Review 85 (Dec 1995): 1029-1046.
URI:	http://wrap.warwick.ac.uk/id/eprint/1900

Request changes to a record

Actions (login required)

View Item