Trade Elasticities

Jean Imbs, Isabelle Mejean

Research output: Contribution to journalArticlepeer-review

Abstract

Conventional aggregate trade elasticity estimates hardly vary across countries. We introduce an aggregate elasticity that is implied by theory: It is the value that equates the welfare gains from trade as implied by one- and multi-sector versions of the model in Arkolakis et al. (American Economic Review, 102 (2012):94–130). These estimates are predicated on sector-level values for trade elasticites, which we provide at three-digit levels for 28 developed and developing countries. The values for this aggregate elasticity vary greatly across countries, and they do so because of countries' patterns of production and because a given sector-level elasticity displays considerable cross-country heterogeneity.

Original languageEnglish (US)
Pages (from-to)383-402
Number of pages20
JournalReview of International Economics
Volume25
Issue number2
DOIs
StatePublished - May 1 2017

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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