Gravity Redux: Estimation of gravity-equation coefficients, elasticities of substitution, and general equilibrium comparative statics under asymmetric bilateral trade costs

Bergstrand, Jeffrey H.; Egger, Peter; Larch, Mario

doi:10.1016/j.jinteco.2012.05.005

Cited by 115 publications

(86 citation statements)

References 21 publications

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“…11 This is close to the estimate Aichele (2013) obtains using the approach by Bergstrand, Egger, and Larch (2013) and equal to the benchmark choice of Anderson and van Wincoop (2003). We additionally solve our model for σ l = 8 and σ l = 10 as a robustness check.…”

Section: Determination Of Remaining Model Parameterssupporting

confidence: 67%

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Carbon tariffs: An analysis of the trade, welfare, and emission effects

Larch

Wanner

2017

Journal of International Economics

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115

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Section: Determination Of Remaining Model Parameterssupporting

confidence: 67%

“…For most of the data in this work, we use the Global Trade Analysis Project (GTAP) 8 database (Narayanan, Aguiar, and McDougall, 2010). This database 10 See for an overview Feenstra (2004) and for a recently suggested method Bergstrand, Egger, and Larch (2013).…”

Section: Determination Of Remaining Model Parametersmentioning

confidence: 99%

Carbon tariffs: An analysis of the trade, welfare, and emission effects

Larch

Wanner

2017

Journal of International Economics

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115

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“…To take into account general equilibrium effects of trade liberalization, this strand of literature resorts to counterfactual policy experiments, simulating effects of trade cost changes on (gross) trade patterns and welfare in general equilibrium. Several studies investigate the effects of abolishing the Canada-U.S. border, (e.g., Anderson and van Wincoop, 2003;Bergstrand et al, 2013). Other studies simulate the gains from trade versus autarky (see, e.g., Eaton and Kortum, 2002) or free trade agreement (FTA) formation (Egger et al, 2011;Egger and Larch, 2011) or assess the effects of trade imbalances on welfare (Dekle et al, 2007).…”

Section: Introductionmentioning

confidence: 99%

Where is the value added? Trade liberalization and production networks

Aichele

Heiland

2018

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Where is the Value Added? Trade Liberalization and Production Networks Abstract Fragmentation of the global value chain makes it difficult to assess the effects of trade liberalization on the global pattern of production. Gross bilateral trade ows no longer reveal a country's or a sector's value added contribution. Yet, it is value added that matters for employment and welfare. We derive a structural equation for value added trade ows and theorybased measures for production networks from a multi-sector gravity model with inter-sectoral linkages to analyze the effects of trade liberalization in the presence of globally fragmented value chains. We estimate the model's key parameters, calibrate it to the year 2000 using the World Input-Output Database, and perform a counterfactual analysis of China's WTO accession. We find that China's WTO entry accounts for about 45% of the decrease in China's value added exports to exports ratio and for about 7% of the decline in this figure on the world level as observed between 2000 and 2007. Furthermore, our results imply that China's WTO accession was the driving force behind the strengthening of production networks with its neighbors and led to significant welfare gains for China, Australia, and the proximate Asian economies. Terms of use: Documents inJEL-Codes: F130, F140, F170.

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“…However for the estimation of the trade flows it might be a sensitive step (Bergstrand et al, 2013). In a nutshell, residuals are asymmetric (η ij ∼ η ji , see Eq.…”

Section: Predicting the Architecture: Null Versus Gravity Modelmentioning

confidence: 99%

Global Trade Imbalances: A Network Approach

Dueñas

Fagiolo

2014

Advs. Complex Syst.

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We study trade imbalances between world countries in the period 1960-2000 using a complex-network approach. We show that trade imbalances in absolute value are characterized by a hierarchical arrangement wherein few rich economies display high clustering and carry an important amount of global-trade imbalances. In contrast, trade imbalances in relative terms show a more fragmented topology, with less concentrated clustering which is particularly high for emergent economies. In addition, we find that traditional null random-network models and the gravity model poorly predict the topology of trade imbalance networks. Our main finding is that the evolution of the international trade has caused very heterogeneous imbalances in world economies, which may have important consequences for global instability and development.

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Gravity Redux: Estimation of gravity-equation coefficients, elasticities of substitution, and general equilibrium comparative statics under asymmetric bilateral trade costs

Cited by 115 publications

References 21 publications

Carbon tariffs: An analysis of the trade, welfare, and emission effects

Carbon tariffs: An analysis of the trade, welfare, and emission effects

Where is the value added? Trade liberalization and production networks

Global Trade Imbalances: A Network Approach

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