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 language | English (US) |
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Pages (from-to) | 383-402 |
Number of pages | 20 |
Journal | Review of International Economics |
Volume | 25 |
Issue number | 2 |
DOIs | |
State | Published - May 1 2017 |
ASJC Scopus subject areas
- Geography, Planning and Development
- Development