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Why Do Nations Trade (So Little)?

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Author Info

  • James E. Anderson

    ()
    (Boston College)

Abstract

There isn't nearly as much trade as standard models suggest there should be. Formal trade barriers and transport costs are too low to account for the difference. The pattern of missing trade has interesting variation across country pairs. These clues suggest the need for theoretical and eventually structural empirical work on the missing transactions costs. This paper reviews recent empirical findings and some promising research directions in search, predation and contract theory.

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File URL: http://fmwww.bc.edu/EC-P/wp428.pdf
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Bibliographic Info

Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 428.

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Length: 37 pages
Date of creation: 15 Aug 1999
Date of revision:
Publication status: published, Pacific Economic Review 5 (2000), 115-134.
Handle: RePEc:boc:bocoec:428

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Related research

Keywords: trade costs; gravity;

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References

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Citations

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Cited by:
  1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
  2. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2007. "Estimating models of complex FDI: Are there third-country effects?," Journal of Econometrics, Elsevier, vol. 140(1), pages 260-281, September.
  3. Frank A.G. den Butter & Raphie Hayat, 0000. "Trade between China and the Netherlands: a Case Study of Globalization," Tinbergen Institute Discussion Papers 08-016/3, Tinbergen Institute.
  4. Sugata Marjit & Biswajit Mandal, 2009. "General Trading Costs in Pure Theory of International Trade," DEGIT Conference Papers c014_011, DEGIT, Dynamics, Economic Growth, and International Trade.
  5. Howard J. Wall, 2000. "Gravity model specification and the effects of the Canada-U.S. border," Working Papers 2000-024, Federal Reserve Bank of St. Louis.
  6. Maureen Lankhuizen & Henri L.F. de Groot & Gert-Jan M. Linders, 2009. "The Trade-Off between Foreign Direct Investments and Exports: The Role of Multiple Dimensions of Distance," Tinbergen Institute Discussion Papers 09-050/3, Tinbergen Institute.
  7. Enzo Croce & V. Hugo Juan-Ramon & Feng Zhu, 2004. "Performance of Western Hemisphere Trading Blocs," IMF Working Papers 04/109, International Monetary Fund.
  8. Koeniger, Winfried, 2002. "Defensive Innovations," IZA Discussion Papers 454, Institute for the Study of Labor (IZA).
  9. repec:dgr:uvatin:2008016 is not listed on IDEAS
  10. Gert-Jan Linders, 2004. "The Effect of Domestic Institutions on International Trade Flows: A sectoral analysis," ERSA conference papers ersa04p357, European Regional Science Association.
  11. repec:dgr:uvatin:0000016 is not listed on IDEAS
  12. Enrico Spolaore, 2004. "Economic Integration, International Conflict and Political Unions," Rivista di Politica Economica, SIPI Spa, vol. 94(5), pages 3-50, September.

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