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Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Funke (Hamburg University Department of Economics)
Ralf Ruhwedel (Hamburg University Department of Economics)
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We calculate welfare gains of trade liberalization in the Central and East European transition economies, following the approach of Romer (1994), who emphasized that proper modeling of the impact of trade restrictions on the number of available product varieties is crucial to quantifying the welfare impact of trade liberalization. The empirical work relies on direct measures of product variety calculated from 5- digit trade data. Although the issue is far from settled, the emerging conclusion is that freer trade has boosted welfare.
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Paper provided by EconWPA in its series Macroeconomics with number
0401016.
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Length: 24 pages
Date of creation: 30 Jan 2004Date of revision:
Handle: RePEc:wpa:wuwpma:0401016Note: Type of Document - ; pages: 24; figures: includedContact details of provider: Web page: http://129.3.20.41
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Keywords: Trade Liberalization Product Variety Welfare Transition Economies Other versions of this item:
Paper Ralf Ruhwedel & Michael Funke, 2004.
"Trade, Product Variety and Welfare: A Quantitative Assessment for the Transition Economies in Central and Eastern Europe ,"
Quantitative Macroeconomics Working Papers
20401, Hamburg University, Department of Economics.
[Downloadable!] Funke, Michael & Ruhwedel, Ralf, 2003.
"Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe ,"
BOFIT Discussion Papers
17/2003, Bank of Finland, Institute for Economies in Transition.
[Downloadable!] Find related papers by JEL classification: D60 - Microeconomics - - Welfare Economics - - - General F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F15 - International Economics - - Trade - - - Economic Integration
This paper has been announced in the following NEP Reports :
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.: Ralf Ruhwedel & Michael Funke, 2004.
"Trade, Product Variety and Welfare: A Quantitative Assessment for the Transition Economies in Central and Eastern Europe ,"
Quantitative Macroeconomics Working Papers
20401, Hamburg University, Department of Economics.
[Downloadable!]
Other versions:
Michael Funke & Ralf Ruhwedel, 2004.
"Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe ,"
Macroeconomics
0401016, EconWPA.
[Downloadable!] Funke, Michael & Ruhwedel, Ralf, 2003.
"Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe ,"
BOFIT Discussion Papers
17/2003, Bank of Finland, Institute for Economies in Transition.
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Funke, Michael & Ruhwedel, Ralf, 2000.
"Product Variety and Economic Growth - Empirical Evidence for the OECD Countries ,"
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[Downloadable!] (restricted) Romer, Paul, 1994.
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"Economic Reform and the Process of Global Integration ,"
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Economic Studies Program, The Brookings Institution, vol. 26(1995-1), pages 1-118.
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Harris, Richard, 1984.
"Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition ,"
American Economic Review ,
American Economic Association, vol. 74(5), pages 1016-32, December.
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Feenstra, Robert C. & Yang, Tzu-Han & Hamilton, Gary G., 1999.
"Business groups and product variety in trade: evidence from South Korea, Taiwan and Japan ,"
Journal of International Economics ,
Elsevier, vol. 48(1), pages 71-100, June.
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Rutherford, Thomas F. & Tarr, David G., 1998.
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1970, The World Bank.
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Dani Rodrik, 1992.
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Other versions: Jeffrey A. Frankel & David Romer, 1999.
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Hoekman, Bernard & Djankov, Simeon, 1997.
"Determinants of the Export Structure of Countries in Central and Eastern Europe ,"
World Bank Economic Review ,
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"How Costly Is Protectionism? ,"
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Jeffrey Sachs & Andrew Warner, 1995.
"Economic Reform and the Progress of Global Integration ,"
Harvard Institute of Economic Research Working Papers
1733, Harvard - Institute of Economic Research.
Tito Boeri & Joaquim Oliveira Martins, 2000.
"Varieties, Jobs and EU Enlargement ,"
William Davidson Institute Working Papers Series
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Drábek, Zdenek & Smith, Alasdair, 1995.
"Trade Performance and Trade Policy in Central and Eastern Europe ,"
CEPR Discussion Papers
1182, C.E.P.R. Discussion Papers.
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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.)
Nirvikar Singh, 2004.
"Transaction Costs, Information Technology and Development ,"
Santa Cruz Center for International Economics, Working Paper Series
1045, Center for International Economics, UC Santa Cruz.
[Downloadable!]
Other versions:
Nirvikar Singh, 2004.
"Transaction Costs, Information Technology and Development ,"
Santa Cruz Department of Economics, Working Paper Series
1027, Department of Economics, UC Santa Cruz.
[Downloadable!] Singh, Nirvikar, 2008.
"Transaction Costs, Information Technology and Development ,"
MPRA Paper
9095, University Library of Munich, Germany.
[Downloadable!] Nirvikar Singh, 2004.
"Transaction Costs, Information Technology and Development ,"
Development and Comp Systems
0412005, EconWPA.
[Downloadable!] Michael Funke & Ralf Ruhwedel, 2004.
"Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe ,"
Macroeconomics
0401016, EconWPA.
[Downloadable!]
Other versions:
Ralf Ruhwedel & Michael Funke, 2004.
"Trade, Product Variety and Welfare: A Quantitative Assessment for the Transition Economies in Central and Eastern Europe ,"
Quantitative Macroeconomics Working Papers
20401, Hamburg University, Department of Economics.
[Downloadable!] Funke, Michael & Ruhwedel, Ralf, 2003.
"Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe ,"
BOFIT Discussion Papers
17/2003, Bank of Finland, Institute for Economies in Transition.
[Downloadable!] Paul R. Bergin & Reuven Glick, 2005.
"Tradability, productivity, and understanding international economic integration ,"
Working Paper Series
2005-13, Federal Reserve Bank of San Francisco.
[Downloadable!]
Other versions: Itai Agur, 2006.
"Firm Heterogeneity and the Two Sources of Gains from Trade ,"
Economics Working Papers
ECO2006/38, European University Institute.
[Downloadable!]
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