Gravity redux : measuring international trade costs with panel data
Novy, Dennis. (2012) Gravity redux : measuring international trade costs with panel data. Economic Inquiry, Vol.51 (No.1). pp. 101-121. ISSN 0095-2583Full text not available from this repository.
Official URL: http://dx.doi.org/10.1111/j.1465-7295.2011.00439.x
Barriers to international trade are known to be large but because of data limitations it is hard to measure them directly for a large number of countries over many years. To address this problem, I derive a micro-founded measure of bilateral trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is consistent with a broad range of leading trade theories including Ricardian and heterogeneous firms models. In an application I show that U.S. trade costs with major trading partners declined on average by about 40 between 1970 and 2000, with Mexico and Canada experiencing the biggest reductions.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HB Economic Theory|
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||Economic Inquiry|
|Publisher:||Wiley-Blackwell Publishing, Inc.|
|Page Range:||pp. 101-121|
|Access rights to Published version:||Restricted or Subscription Access|
|Funder:||Economic and Social Research Council|
|Version or Related Resource:||Novy, D. (2009). Gravity redux: measuring international trade costs with panel data. [Coventry] : University of Warwick, Economics Department. (Warwick economic research papers, no.861).|
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