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Why trade matters after all


Ossa, Ralph (2015). Why trade matters after all. Journal of International Economics, 97(2):266-277.

Abstract

I show that accounting for cross-industry variation in trade elasticities greatly magnifies the estimated gains from trade. The main idea is as simple as it is general: while imports in the average industry do not matter too much, imports in some industries are critical to the functioning of the economy, so that a complete shutdown of international trade is very costly overall.

Abstract

I show that accounting for cross-industry variation in trade elasticities greatly magnifies the estimated gains from trade. The main idea is as simple as it is general: while imports in the average industry do not matter too much, imports in some industries are critical to the functioning of the economy, so that a complete shutdown of international trade is very costly overall.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Finance
Social Sciences & Humanities > Economics and Econometrics
Uncontrolled Keywords:Gains from trade, multi-industry model, trade elasticity
Language:English
Date:November 2015
Deposited On:08 Mar 2017 15:59
Last Modified:01 Apr 2020 22:45
Publisher:Elsevier
ISSN:0022-1996
OA Status:Green
Publisher DOI:https://doi.org/10.1016/j.jinteco.2015.07.002

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