Topic
Bilateral trade
About: Bilateral trade is a research topic. Over the lifetime, 6427 publications have been published within this topic receiving 156160 citations.
Papers published on a yearly basis
Papers
More filters
••
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.
Abstract: We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it) We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990 We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction
3,782 citations
••
TL;DR: In this paper, the authors reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition, and examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover.
Abstract: We reconcile trade theory with plant-level export behavior, extending the Ricardian model to accommodate many countries, geographic barriers, and imperfect competition. Our model captures qualitatively basic facts about U.S. plants: (i) productivity dispersion, (ii) higher productivity among exporters, (iii) the small fraction who export, (iv) the small fraction earned from exports among exporting plants, and (v) the size advantage of exporters. Fitting the model to bilateral trade among the United States and 46 major trade partners, we examine the impact of globalization and dollar appreciation on productivity, plant entry and exit, and labor turnover in U.S. manufacturing. (JEL F11, F17, O33)
2,280 citations
••
TL;DR: In this article, the authors investigated the dependence of transport costs on geography and infrastructure and found that poor infrastructure is an important determinant of transportation costs, especially for landlocked countries.
Abstract: The authors use different data sets to investigate the dependence of transport costs on geography and infrastructure. Infrastructure is an important determinant of transport costs, especially for landlocked countries. Analysis of bilateral trade data confirms the importance of infrastructure and gives an estimate of the elasticity of trade flows with respect to the trade cost factor of around-3. A deterioration of infrastructure from the median to the 75th percentile raises transport costs by 12 percentage points and reduces trade volumes by 28 percent. Analysis of African trade flows indicates that their relatively low level is largely due to poor infrastructure.
1,707 citations
••
TL;DR: In this paper, the authors combine input-output and bilateral trade data to quantify cross-border production linkages, and compute bilateral trade in value added for 87 countries and regions.
1,427 citations
••
TL;DR: The authors showed that the impact of trade barriers on trade flows is dampened by the elasticity of substitution, and not magnified by trade barriers, and that trade barriers have little impact on bilateral trade flows.
Abstract: By considering a model with identical firms, Paul Krugman (1980) predicts that a higher elas ticity of substitution between goods magnifies the impact of trade barriers on trade flows. In this paper, I introduce firm heterogeneity in a simple model of international trade. When the distribu tion of productivity across firms is Pareto, which is close to the observed size distribution of US firms, the predictions of the Krugman model with representative firms are overturned: the impact of trade barriers on trade flows is dampened by the elasticity of substitution, and not magnified. In Krugman (1980), identical countries trade differentiated goods despite the presence of trade barriers because consumers have a preference for variety. If goods are less substitutable, con sumers are willing to buy foreign varieties even at a higher cost, and trade barriers have little impact on bilateral trade flows. Total exports from country A to country B are given by the following expression:
1,402 citations