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Specialization and the Volume of Trade: Do the Data Obey the Laws?

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Author Info
James Harrigan

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Abstract

The core subjects of trade theory are the pattern and volume of trade: which goods are traded by which countries, and how much of those goods are traded. The first part of the paper discusses evidence on comparative advantage, with an emphasis on carefully connecting theory models to data analyses. The second part of the chapter first considers the theoretical foundations of the gravity model, and then reviews the small number of papers that have tried to test, rather than simply use, the implications of gravity. Both parts of the paper yield the same conclusion: we are still in the very early stages of empirically understanding specialization and the volume of trade, but the work that has been done can serve as a starting point for further research.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8675.

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Date of creation: Dec 2001
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Handle: RePEc:nbr:nberwo:8675

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F1 - International Economics - - Trade

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  7. Simon J. Evenett & Wolfgang Keller, 1998. "On Theories Explaining the Success of the Gravity Equation," NBER Working Papers 6529, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Golub, Stephen S & Hsieh, Chang-Tai, 2000. "Classical Ricardian Theory of Comparative Advantage Revisited," Review of International Economics, Blackwell Publishing, vol. 8(2), pages 221-34, May. [Downloadable!] (restricted)
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  12. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September. [Downloadable!] (restricted)
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  16. James Harrigan, 1997. "Cross-country comparisons of industry total factor productivity: theory and evidence," Research Paper 9734, Federal Reserve Bank of New York. [Downloadable!]
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  18. Harrigan, James, 1999. "Estimation of cross-country differences in industry production functions," Journal of International Economics, Elsevier, vol. 47(2), pages 267-293, April. [Downloadable!] (restricted)
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  19. Robert C. Feenstra & James R. Markusen & Andrew K. Rose, 2001. "Using the gravity equation to differentiate among alternative theories of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 430-447, May. [Downloadable!] (restricted)
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  30. repec:att:wimass:199713 is not listed on IDEAS
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  38. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alejandro Diaz-Bautista, 2005. "Agglomeration Economies, Economic Growth and the New Economic Geography in Mexico," Urban/Regional 0508001, EconWPA. [Downloadable!]
  2. Roberto Álvarez & Rodrigo Fuentes, 2004. "Patterns of Specialization and Economic Growth in Chile by Sector," Working Papers Central Bank of Chile 288, Central Bank of Chile. [Downloadable!]
  3. James Harrigan & Rohit Vanjani, 2003. "Is Japan's Trade (still) Different?," NBER Working Papers 10058, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Toshihiro Okubo, 2006. "Trade Bloc Formation in Interwar Japan --Gravity Model Analysis-- (forthcoming in Journal of the Japanese and International Economies)," HEI Working Papers 03-2006, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  5. Trevor A. Reeve, 2002. "Factor endowments and industrial structure," International Finance Discussion Papers 731, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  6. Richard Baldwin Virginia Di Nino, 2006. "Euros and zeros: The common currency effect on trade in new goods," HEI Working Papers heiwp21-2006, Economics Section, The Graduate Institute of International Studies, revised 31 Oct 2006. [Downloadable!]
    Other versions:
  7. Ciccone, Antonio & Papaioannou, Elias, 2005. "Human Capital, the Structure of Production, and Growth," CEPR Discussion Papers 5354, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. Harry Garretsen & Marc Schramm & Steven Brakman, 2003. "The Spatial Distribution of Wages: Estimating the Helpman-Hanson model for Germany," Working Papers 03-08, Utrecht School of Economics. [Downloadable!]
  9. Jean Imbs, 2003. "Trade, Finance, Specialization, and Synchronization," IMF Working Papers 03/81, International Monetary Fund. [Downloadable!]
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  10. Doireann Fitzgerald & Juan Carlos Hallak, 2004. "Specialization, Factor Accumulation and Development," NBER Working Papers 10638, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Kumagai, Satoru, 2007. "Comparing the Networks of Ethnic Japanese and Ethnic Chinese in International Trade," IDE Discussion Papers 113, Institute of Developing Economies, Japan External Trade Organization(JETRO). [Downloadable!]
  12. Claudia M. Buch, 2002. "Business Cycle Volatility and Globalization: A Survey," Kiel Working Papers 1107, Kiel Institute for the World Economy. [Downloadable!]
  13. Cuñat, Alejandro & Maffezzoli, Marco, 2002. "Neoclassical Growth and Commodity Trade," CEPR Discussion Papers 3322, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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