Trade booms, trade busts, and trade costs
Jacks, David S., Meissner, Christopher M. and Novy, Dennis. (2011) Trade booms, trade busts, and trade costs. Journal of International Economics, Vol.83 (No.2). pp. 185-201. ISSN 0022-1996Full text not available from this repository.
Official URL: http://dx.doi.org/10.1016/j.jinteco.2010.10.008
What has driven trade booms and trade busts in the past and present? We employ a micro-founded measure of trade frictions consistent with leading trade theories to gauge the importance of bilateral trade costs in determining international trade flows. We construct a new balanced sample of bilateral trade flows for 130 country pairs across the Americas, Asia, Europe, and Oceania for the period from 1870 to 2000 and demonstrate an overriding role for declining trade costs in the pre-World War I trade boom. In contrast, for the post-World War II trade boom we identify changes in output as the dominant force. Finally, the entirety of the interwar trade bust is explained by increases in trade costs. (C) 2010 Elsevier B.V. All rights reserved.
|Item Type:||Journal Article|
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||Journal of International Economics|
|Page Range:||pp. 185-201|
|Version or Related Resource:||Jacks, David S., et al. (2009). Trade booms, trade busts, and trade costs. (NBER Working Papers, no.15267).|
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