The determinants of bilateral trade
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Detail(s)
Original language | English |
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Pages (from-to) | 459-483 |
Journal / Publication | Canadian Journal of Economics |
Volume | 37 |
Issue number | 2 |
Online published | 22 Apr 2004 |
Publication status | Published - May 2004 |
Externally published | Yes |
Link(s)
Abstract
In this paper we present a monopolistic competition model that incorporates asymmetric trade barriers and international differences in production costs. The model implies a highly non-linear bilateral trade equation. Estimation of this equation yields parameters for the elasticity of substitution and trade costs that are more reasonable than those found in previous studies. A simulation indicates that trade liberalization will shift trade from rich countries to poor countries and from within continental trading partners with preferential trade agreements to intercontinental trading partners. © Canadian Economics Association.
Research Area(s)
Citation Format(s)
The determinants of bilateral trade. / Lai, Huiwen; Zhu, Susan Chun.
In: Canadian Journal of Economics, Vol. 37, No. 2, 05.2004, p. 459-483.
In: Canadian Journal of Economics, Vol. 37, No. 2, 05.2004, p. 459-483.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review