Trade Openness and Cross-country Income Differences

Arbeitspapier

Development accounting literature usually attributes the observed cross-country variation in per capita income to differences in countries' factor endowments and total factor productivity (the Solow residual). While the former can be relatively straightforward interpreted and measured, the latter remains at least partly a black box. In this paper, we provide a structural interpretation for differences in total factor productivity across countries and quantitatively explore the role of trade barriers in explaining cross-country income differences. In particular, we find that giving all countries the same market entry costs or giving all country-pairs the same variable trade costs reduces inequality by around 13%.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SFB/TR 15 Discussion Paper ; No. 402

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Neoclassical Models of Trade ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Development: General ; Economic Growth and Aggregate Productivity: General
• Thema: General equilibrium ; market access costs ; development accounting ; experiments

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hepenstrick, Christian ; Tarasov, Alexander
• Ereignis: Veröffentlichung
• (wer): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (wo): München
• (wann): 2013

Weitere Informationen

• DOI: doi:10.5282/ubm/epub.15421
• Handle: http://hdl.handle.net/10419/93838
• URN: urn:nbn:de:bvb:19-epub-15421-8
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ