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Development Perspectives on Trade Growth at the Extensive Margin

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  • Benjamin Shepherd
  • Patrick Messerlin

    (Groupe d'économie mondiale)

Abstract

This dissertation examines the links between international trade and economic development through the lens of export growth at the extensive margin. By extensive margin growth is meant either trade in previously untraded products, or trade in existing products between new country pairs. The three chapters of this dissertation represent some of the first contributions to the literature in this area with an approach anchored in development policy concerns. They contribute to a clearer understanding of the links between firm heterogeneity, extensive margin growth, and development. In addition, they provide new insights into the importance of domestic regulations and institutions in terms of developing country trade performance. Chapter one shows that similar factors also affect diversification in the geographical dimension. Chapter three takes the opposite approach, showing that product standards in importing countries can affect export diversification overseas. All three chapters use trade models incorporating heterogeneous firms to motivate the empirical work undertaken.

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Paper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/5341.

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Date of creation: Mar 2008
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Handle: RePEc:spo:wpmain:info:hdl:2441/5341

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Keywords: International Trade; Economic Growth; Commerce international; Developpement économique;

References

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  1. Andrei A. Levchenko, 2004. "Institutional Quality and International Trade," IMF Working Papers, International Monetary Fund 04/231, International Monetary Fund.
  2. Ozden, Caglar & Reinhardt, Eric, 2005. "The perversity of preferences: GSP and developing country trade policies, 1976-2000," Journal of Development Economics, Elsevier, Elsevier, vol. 78(1), pages 1-21, October.
  3. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 122(2), pages 569-600, 05.
  4. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers, C.E.P.R. Discussion Papers 827, C.E.P.R. Discussion Papers.
  5. Baldwin, Richard & Robert-Nicoud, Frédéric, 2006. "Trade and Growth with Heterogenous Firms," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5563, C.E.P.R. Discussion Papers.
  6. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3381, C.E.P.R. Discussion Papers.
  7. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, Elsevier, vol. 34(9), pages 1498-1516, September.
  8. Maggie X. Chen & Aaditya Mattoo, 2008. "Regionalism in Standards: Good or Bad for Trade?," Working Papers, The George Washington University, Institute for International Economic Policy 2009-14, The George Washington University, Institute for International Economic Policy.
  9. Anson, José & Cadot, Olivier & de Melo, Jaime & Estevadeordal, Antoni & Suwa Eisenmann, Akiko & Tumurchudur, Bolormaa, 2003. "Rules of Origin in North-South Preferential Trading Arrangements with an Application to NAFTA," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4166, C.E.P.R. Discussion Papers.
  10. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  11. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, American Economic Association, vol. 89(5), pages 1135-1155, December.
  12. James E. Anderson & Douglas Marcouiller, S.J., 1999. "Insecurity and the Pattern of Trade: An Empirical Investigation," Boston College Working Papers in Economics, Boston College Department of Economics 418, Boston College Department of Economics, revised 03 Aug 2000.
  13. Fugazza, Marco & Robert-Nicoud, Frédéric, 2006. "Can South-South trade Liberalisation Stimulate North-South Trade ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 21, pages 234-253.
  14. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 389-405, June.
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