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JournalISSN: 1225-651X

Journal of Economic Integration 

Sejong University
About: Journal of Economic Integration is an academic journal published by Sejong University. The journal publishes majorly in the area(s): Economic integration & Trade barrier. It has an ISSN identifier of 1225-651X. It is also open access. Over the lifetime, 1014 publications have been published receiving 12165 citations.


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Journal ArticleDOI
TL;DR: In this paper, a minimalist derivation of the gravity equation is used to identify three common errors in the literature, what they call the gold, silver and bronze medal errors, and estimates of the size of the biases taking the currency union trade effect as an example.
Abstract: This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example. We argue that the best estimator involves time-varying country dummies, a time dummy and time-invariant pair dummies.

294 citations

Posted Content
TL;DR: In this paper, the authors estimate annual gravity equations for 1960-85 on a large sample, allowing them to identify time trends in the coefficients, and show that the weight of exporter's supply has increased relative to importers' demand in explaining the long-run strong performancee of global exports.
Abstract: We estimate annual gravity equations for 1960-85 on a large sample, allowing us to identify time trends in the coefficients. Our results include the following: (1) The weight of exporter's supply has increased relative to importers' demand in explaining the long-run strong performancee of global exports; (2)The deterrent effect of economic and cultural distance on international trade increased until the early-to mid-1970s, at which poing it began to decline; (3) The openness variable devised by Sachs and Warner [1985], and show by them to be associated with faster economic growth, in indeed associated with greater imports as well, with increasing intensity over time. Lower tariffs and export taxes are also associated with greater imports, while the effect of free-trade groupings is more complex; and (4) The use of absolute price comparisons in the equation is not particularly fruitful and yields counterintuitive results.

183 citations

Journal ArticleDOI
TL;DR: The authors used a global CGE model to investigate the extent of these costs, by examining the effects of an increase in developed countries? quotas on both skilled and unskilled temporary labour equivalent to 3% of their labour forces.
Abstract: While the liberalisation of trade has been at the forefront of the global agenda for many decades, the movement of natural persons remains heavily guarded. Nevertheless restrictions on the movement of natural persons across regions impose a cost on developing and developed economies that far exceeds that of trade restrictions on goods. This paper uses a global CGE model to investigate the extent of these costs, by examining the effects of an increase in developed countries? quotas on both skilled and unskilled temporary labour equivalent to 3% of their labour forces. The results confirm that restrictions on the movement of natural persons impose significant costs on nearly all countries (over $150 billion in all), and that those on unskilled labour are more burdensome than those on skilled labour.

156 citations

Journal ArticleDOI
TL;DR: In this paper, the authors introduce the Melitz theoretical framework with firm heterogeneity and fixed exporting costs into a global CGE model to capture the extensive margin of trade, thereby underestimating the trade and welfare effects of trade opening.
Abstract: Traditional CGE models with Armington assumption fail to capture the extensive margin of trade, thereby underestimate the trade and welfare effects of trade opening. To address this problem, this paper introduces the Melitz (2003) theoretical framework with firm heterogeneity and fixed exporting costs into a global CGE model. Some illustrative simulations show that the introduction of firm heterogeneity improves the ability of CGE model to capture the trade expansion and welfare effects of trade liberalization. Under the case of global manufacturing tariff cut, the estimated gains in welfare and exports are more than double of that obtained from standard Armington CGE model. Sensitivity analysis also indicates that model results are sensitive to the shape parameters of firm productivity distribution, suggesting the need of further empirical work to estimate the degree of firm heterogeneity.

152 citations

Performance
Metrics
No. of papers from the Journal in previous years
YearPapers
202313
202224
202114
202029
201928
201830