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Comment: Inferring trade costs from trade booms and trade busts

Corlay, Guillaume; Dupraz, Stéphane; Labonne, Claire; Muller, Anne; Antonin, Céline; Daudin, Guillaume (2017), Comment: Inferring trade costs from trade booms and trade busts, International Economics, 152, p. 1-8. 10.1016/j.inteco.2017.10.001

Type
Article accepté pour publication ou publié
Date
2017
Journal name
International Economics
Number
152
Publisher
Elsevier
Pages
1-8
Publication identifier
10.1016/j.inteco.2017.10.001
Metadata
Show full item record
Author(s)
Corlay, Guillaume
Ecole Nationale de la Statistique et de l'Analyse Economique [ENSAE]
Dupraz, Stéphane
Department of Economics Columbia University
Labonne, Claire
Ecole Nationale de la Statistique et de l'Analyse Economique [ENSAE]
Centre de recherche de la Banque de France
Muller, Anne
Ecole Nationale de la Statistique et de l'Analyse Economique [ENSAE]
Antonin, Céline
Observatoire français des conjonctures économiques (Sciences Po) [OFCE]
Daudin, Guillaume
Laboratoire d'Economie de Dauphine [LEDa]
Abstract (EN)
Jacks et al. (2011) offer a method to measure trade costs that relies exclusively on bilateral exports and GDP statistics. They argue that the reduction in trade costs was the main driving force of trade growth during the first globalization (1870–1913), whereas economic expansion was the main driving force during the second globalization (1950–2000). This potentially major result is driven by the use of an ad hoc aggregation method of bilateral trade costs at the country and at the global levels. What Jacks et al. (2011) capture is that some pairs of countries experienced faster trade growth in the first globalization than in the second globalization. More generally, we cast doubts on the possibility to reach conclusions on aggregate costs with a method that excludes a priori changes in non-trade costs determinants of openness rates and hence can only rephrase the information contained in them.
Subjects / Keywords
Trade costs; Globalization; Gravity model; Aggregation; Structure effect
JEL
N70 - General, International, or Comparative
F14 - Empirical Studies of Trade

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