Gains from Trade and the Sovereign Bond Market

Arbeitspapier

Increasing international flows of goods, services, and financial assets have been shown to increase a country's welfare through various channels. This paper studies the interaction between a country's welfare gains from international trade and its sovereign’s access to bond markets. We do so by incorporating a sovereign bond market into a simple Armington (1969) trade model. While standard trade models suggest surprisingly small gains from trade, our model implies that introducing channels through a sovereign bond market greatly magnifies the gains from trade.

Object Details

• Language: Englisch

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Economic Impacts of Globalization: General
• Subject: Gains from trade ; Sovereign debt ; Sovereign default ; Trade openness

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ayumu Ken Kikkawa ; Akira Sasahara
• Event: Veröffentlichung
• (who): ZBW – Leibniz Information Centre for Economics
• (where): Kiel, Hamburg
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/190820
• Last update: 10.03.2025, 11:42 AM CET