Chen, Natalie and Novy, Dennis (2009) International trade integration : a disaggregated approach. In: AEA Annual Meeting 2009, San Francisco, 3-5 Jan, 2009 (Unpublished)

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Abstract

This paper investigates the sources and size of trade barriers at the industry level. We derive a micro-founded measure of industry-specific bilateral trade integration that has an in-built control for time-varying multilateral resistance. This trade integration measure is consistent with a broad range of recent trade models including the Anderson and van Wincoop (2003) framework, the Ricardian model by Eaton and Kortum (2002) and heterogeneous firms
models. We use it to explore trade barriers for manufacturing industries in European Union countries between 1999 and 2003. We find a large degree of trade cost heterogeneity across industries. The most important trade barriers are transportation costs and policy factors such as Technical Barriers to Trade. Trade integration is generally lower for countries that opted out of the
Euro or did not abolish border controls in accordance with the Schengen Agreement. Reductions in trade barriers explain about one-half of the growth in trade over the period 1999-2003 and are therefore a major driving force of
the EU Single Market.

Item Type:	Conference Item (Paper)
Subjects:	H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Economics
Official Date:	4 January 2009
Dates:	Date Event 4 January 2009 Completion
Status:	Not Peer Reviewed
Publication Status:	Unpublished
Access rights to Published version:	Open Access (Creative Commons)
Version or Related Resource:	Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Invited Speaker : The Leverhulme Centre for Research on Globalisation and Economic Policy. University of Nottingham, 3 Mar 2008. Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Invited Speaker : School of Economics. Georgia Tech, 4 Apr 2008. Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Midwest International Economics Meetings. Department of Economics, University of Illinois at Urbana-Champaign, 2-4 May 2008. Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Invited Speaker : International Economics Workshop. Columbia Business School, 17 Sep 2008. Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Invited Speaker : Center for Pacific Basin Studies. Federal Reserve Bank of San Francisco, 30 Oct 2008. Chen, Natalie and Novy, Dennis (2008). International trade integration : a disaggregated approach. Invited Speaker : Vanderbilt University. Nashville, Tennessee, 03 Nov 2008. Chen, Natalie and Novy, Dennis (2009). International trade integration : a disaggregated approach. CESifo Area Conference on Global Economy. CESifo Conference Centre, Munich, 27-28 Feb 2009.
Conference Paper Type:	Paper
Title of Event:	AEA Annual Meeting 2009
Type of Event:	Conference
Location of Event:	San Francisco
Date(s) of Event:	3-5 Jan, 2009
Related URLs:	Organisation Other Other Other Other

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