Search results for " trade costs"

showing 3 items of 3 documents

Trade Costs, Trade Balances, and Current Accounts: an application of Gravity to Multilateral Trade

2005

In this paper we test the well-known hypothesis of Obstfeld and Rogoff (NBER Macroeconomics Annual 7777:339–390, 2000) that trade costs are the key to explaining the so-called Feldstein–Horioka puzzle. Our approach has a number of novel features. First, we focus on the interrelationship between trade costs, the trade account and the Feldstein–Horioka puzzle. Second, we use the gravity model to estimate the effect of trade costs on bilateral trade and, third, we show how bilateral trade can be used to draw inferences about desired trade balances and desired intertemporal trade. Our econometric results provide strong support for the Obstfeld and Rogoff hypothesis and we are also able to recon…

Economics and EconometricsFeldstein–Horioka puzzle - Trade costs - Gravity model - Home bias puzzle - Current account - Trade balanceFeldstein–Horioka puzzleBalance of tradejel:F10jel:F32Current accountMonetary economicsTrade costFeldstein-Horioka puzzle; trade costs; gravity model; home bias puzzle; current account; trade balanceBilateral tradeFeldstein-Horioka puzzle trade costs gravity model home bias puzzle current account trade balancecurrent account; Feldstein-Horioka puzzle; gravity model; home bias; puzzle; trade balance; trade costsGravity model of tradeEuropean integrationEconomics
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Estimating the gravity equation with the actual number of exporting firms

2013

Para estimar correctamente el efecto de los costes de comerciar sobre las exportaciones de las empresas, la ecuación de gravedad debe controlar por el número de empresas que opera en el mercado internacional. Debido a la ausencia de datos, estudios anteriores han controlado esta variable mediante técnicas econométricas que también pueden generar estimaciones sesgadas. Para superar estos problemas este trabajo estima una ecuación de gravedad utilizando una nueva base de datos de la OCDE y EUROSTAT , que incluye el número de empresas exportadoras en cada relación bilateral. Nuestros resultados muestran que no controlar el margen extensivo genera sesgos muy importantes en la estimación de los …

MacroeconomicsEconomics and Econometricslcsh:HB71-74F14F15Control (management)trade costslcsh:Economics as a scienceOmitted-variable biasTrade costjel:F14lcsh:Economic history and conditionsVariable (computer science)jel:F15Margin (machine learning)exporting firmsOECDddc:330EconomicsEconometricslcsh:HC10-1085Gravity equation exporting firms distance trade costs OECD.Gravity equationGravity equationdistance
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IS THERE A CONTINENTAL BIAS IN TRADE?

2011

The relationship between geography and trade is a central topic in international economics. This paper investigates the potential existence of a continental bias in world trade flows on a sample of 182 countries over the period 1990-2006. Using traditional estimation techniques and recent developments in the econometric analysis of the gravity equation, we find robust evidence of an economically significant continental bias in trade. It implies that, other things equal, countries located on the same continent trade more with each other than countries located on different continents. A continent-by-continent analysis reveals that Oceania, America, Europe and Asia are behind this result. Afri…

gravity equationintercontinental and intra-continental trade costsF14Continental biasddc:330
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