Gravity, trade integration, and heterogeneity across industries

• 成果类型: Article
• 署名作者: Chen, Natalie; Novy, Dennis
• 署名单位: University of Warwick; Centre for Economic Policy Research - UK; University of London; London School Economics & Political Science; Leibniz Association; Ifo Institut
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.07.005
• 发表日期: 2011
• 页码: 206-221
• 关键词: Trade integration; gravity; Trade costs; Elasticity of substitution; Heterogeneity; European Union

摘要

We derive a micro-founded measure of bilateral trade integration that is consistent with a broad range of leading gravity models. This measure accounts for cross-industry heterogeneity by incorporating substitution elasticities estimated at the industry level. We then use it to provide a theory-based ranking of trade integration across manufacturing industries in European Union countries. In addition, we explore the determinants of trade integration, finding that substantial Technical Barriers to Trade in certain industries as well as high transportation costs associated with heavy-weight goods are the most notable trade barriers. (C) 2011 Elsevier B.V All rights reserved.