Arbeitspapier
Exploring the intensive and extensive margins of world trade
World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time (intensive margin). But trade may also increase if a trading bilateral relationship is newly established between countries that have not traded with each other in the past (extensive margin). We provide an empirical dissection of post-World-War- II growth in manufacturing world trade along these two margins. We propose a ?cornersolutions- version? of the gravity model to explain movements on both margins. A Tobit estimation of this model resolves the so-called ?distance-puzzle?. It also finds more convincing evidence than recent literature that WTO-membership enhances trade.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1276
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Economic Integration
- Subject
-
bilateral trade
globalization
gravity model
Außenwirtschaft
Internationale Wirtschaftsbeziehungen
Globalisierung
Gravitationsmodell
WTO-Beitritt
Schätzung
Welt
- Event
-
Geistige Schöpfung
- (who)
-
Felbermayr, Gabriel J.
Kohler, Wilhelm K.
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Felbermayr, Gabriel J.
- Kohler, Wilhelm K.
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2004
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