Gains from trade: Does sectoral heterogeneity matter?*

• 成果类型: Article
• 署名作者: Giri, Rahul; Yi, Kei-Mu; Yilmazkuday, Hakan
• 署名单位: International Monetary Fund; University of Houston System; University of Houston; Federal Reserve System - USA; Federal Reserve Bank - Dallas; National Bureau of Economic Research; State University System of Florida; Florida International University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2021.103429
• 发表日期: 2021
• 关键词: Gains from trade; Estimated trade elasticities; simulated method of moments; Sectoral heterogeneity; International price dispersion; Multi-sector trade

摘要

This paper assesses the quantitative importance of including sectoral heterogeneity in computing the gains from trade. Our framework draws from Caliendo and Parro (2015) and has sectoral heterogeneity along five dimensions, including the elasticity of trade to trade costs. We estimate the sectoral trade elasticity with the Simonovska and Waugh (2014) simulated method of moments estimator and micro price data. Our estimates range from 2.97 to 8.94 across sectors. Our benchmark model is calibrated to 21 OECD countries and 20 sectors. We remove one or two sources of sectoral heterogeneity at a time, and compare the gains from trade to the benchmark model. We also compare an aggregate model with a single elasticity to the benchmark model. Our main result from these counterfactual exercises is that sectoral heterogeneity does not always lead to an increase in the gains from trade, which is consistent with the theory. ? 2021 Elsevier B.V. All rights reserved.