Estimating the effects of non-discriminatory trade policies within structural gravity models

DOI zum Zitieren der Version auf EPub Bayreuth: https://doi.org/10.15495/EPub_UBT_00005738
URN to cite this document: urn:nbn:de:bvb:703-epub-5738-5

Title data

Heid, Benedikt ; Larch, Mario ; Yotov, Yoto V.:
Estimating the effects of non-discriminatory trade policies within structural gravity models.
In: Canadian Journal of Economics : Revue canadienne d'économique. Vol. 54 (2021) Issue 1 . - pp. 376-409.
ISSN 1540-5982
DOI der Verlagsversion: https://doi.org/10.1111/caje.12493

	Format: PDF Name: caje.12493.pdf Version: Published Version Available under License Creative Commons BY 4.0: Attribution
	Download (321kB)

Abstract

We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral trade within a theoretically consistent empirical gravity model. Specifically, we argue that structural gravity estimations should be performed with data that include not only international trade flows but also intra-national trade flows. The use of intra-national sales allows identification of the effects of non-discriminatory trade policies such as most favoured nation tariffs, even in the presence of exporter and importer fixed effects. A byproduct of our approach is that it can be used to recover estimates of the trade elasticity, a key parameter for quantitative trade models. We demonstrate the effectiveness of our techniques in the case of most favoured nation tariffs and “time to export” as representative non-discriminatory determinants of trade on the importer and on the exporter side, respectively. Our methods can be extended to quantify the impact on trade of any country-specific characteristics as well as any non-trade policies.

Further data

Item Type:	Article in a journal
DDC Subjects:	300 Social sciences > 330 Economics
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI - Empirical Economic Research > Chair Economics VI - Empirical Economic Research - Univ.-Prof. Dr. Mario Larch Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI - Empirical Economic Research
Language:	English
Originates at UBT:	Yes
URN:	urn:nbn:de:bvb:703-epub-5738-5
Date Deposited:	31 Aug 2021 10:33
Last Modified:	31 Aug 2021 10:34
URI:	https://epub.uni-bayreuth.de/id/eprint/5738

Download Statistics

Download Statistics

Download Statistics

Downloads

Downloads per month over past year