Novy, Dennis (2012) Gravity redux: measuring international trade costs with panel data. CEP Discussion Papers (CEPDP1114). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
![]() |
Text
- Published Version
Download (735kB) |
Abstract
Barriers to international trade are known to be large but due to 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 percent between 1970 and 2000, with Mexico and Canada experiencing the biggest reductions.
Item Type: | Monograph (Discussion Paper) |
---|---|
Official URL: | https://cep.lse.ac.uk/_new/publications/discussion... |
Additional Information: | © 2012 The Author(s) |
Divisions: | Centre for Economic Performance |
Subjects: | H Social Sciences > HC Economic History and Conditions |
JEL classification: | F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F15 - Economic Integration |
Date Deposited: | 22 Feb 2024 12:48 |
Last Modified: | 16 May 2024 12:34 |
URI: | http://eprints.lse.ac.uk/id/eprint/121749 |
Actions (login required)
![]() |
View Item |