2004
DOI: 10.1257/0022051042177649
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Trade Costs

Abstract: This paper surveys the measurement of trade costs: what we know and don't know but may usefully attempt to learn. Partial and incomplete data on direct measures of costs go with inference on implicit costs from trade flows and prices. Total trade costs in rich countries are large. The ad valorem tax equivalent is about 170 percent when pushing the data hard. Poor countries face even higher trade costs. There is a lot of variation across countries and across goods within countries, much of which makes economic … Show more

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Cited by 2,626 publications
(2,266 citation statements)
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References 55 publications
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“…As it is well-known from the international trade literature, the gravity equation represents one of the most successful models in economics. Empirically, it explains bilateral trade flows between any two countries through their respective economic sizes (i.e., GDPs) and their bilateral trade costs, after accounting for the so-called multilateral resistance indices [81].…”
Section: Climate Change and International Migrationmentioning
confidence: 99%
“…As it is well-known from the international trade literature, the gravity equation represents one of the most successful models in economics. Empirically, it explains bilateral trade flows between any two countries through their respective economic sizes (i.e., GDPs) and their bilateral trade costs, after accounting for the so-called multilateral resistance indices [81].…”
Section: Climate Change and International Migrationmentioning
confidence: 99%
“…On the one hand, international transport costs are generally found to be unrelated to the prices or quantities of the shipped commodities (Anderson and van Wincoop 2004;Hummels and Skiba 2004). On the other hand, freight rates happened to increase (along with oil prices) during the food crisis period independently of food prices.…”
mentioning
confidence: 99%
“…Partly as a result, detailed tariff data are available for most countries, which makes empirical investigation relatively easy. This contrasts starkly with the time and resources required to affect transport costs as well as with the sparse availability of the corresponding data (Anderson and van Wincoop, 2004). …”
Section: Introductionmentioning
confidence: 95%
“…, M. Each country is endowed with an exogenously given mass of L i workers-consumers, each supplying inelastically one unit of labor. Hence, both the world population and the world labor endowment are fixed at 2 Labor is the only production factor and it is internationally immobile.…”
Section: The Modelmentioning
confidence: 99%