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Trade Elasticities

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  • Jean Imbs
  • Isabelle Mejean

Abstract

Conventional aggregate trade elasticity estimates hardly vary across countries. We introduce an aggregate elasticity that is implied by theory: It is the value that equates the welfare gains from trade as implied by one- and multi-sector versions of the model in Arkolakis et al. (American Economic Review, 102 (2012):94–130). These estimates are predicated on sector-level values for trade elasticites, which we provide at three-digit levels for 28 developed and developing countries. The values for this aggregate elasticity vary greatly across countries, and they do so because of countries' patterns of production and because a given sector-level elasticity displays considerable cross-country heterogeneity.
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Suggested Citation

  • Jean Imbs & Isabelle Mejean, 2017. "Trade Elasticities," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 383-402, May.
    • Handle: RePEc:bla:reviec:v:25:y:2017:i:2:p:383-402
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    File URL: http://hdl.handle.net/10.1111/roie.12270
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    Cited by:

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    3. Andrei A Levchenko & Jing Zhang, 2013. "The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(3), pages 479-519, August.
    4. Benedikt Heid & Mario Larch & Yoto V. Yotov, 2021. "Estimating the effects of non‐discriminatory trade policies within structural gravity models," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 376-409, February.
    5. Harald Oberhofer & Michael Pfaffermayr, 2021. "Estimating the trade and welfare effects of Brexit: A panel data structural gravity model," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 338-375, February.
    6. Bergin, Adele & Economides, Philip & Garcia-Rodriguez, Abian & Murphy, Gavin, 2019. "Ireland and Brexit: modelling the impact of deal and no-deal scenarios," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    7. Jyrki Ali-Yrkkö & Tero Kuusi, 2020. "Shield the US from Imports! – GDP impacts on Finland and other European Union member states," Finnish Economic Papers, Finnish Economic Association, vol. 29(1), pages 52-80, Spring.
    8. Hylke Vandenbussche & William Connell Garcia & Wouter Simons, 2018. "The cost of non-TTIP: a global value chain approach," Working Papers of Department of Economics, Leuven 617062, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
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    10. A. Berthou & E. Dhyne, 2018. "Exchange Rate Movements, Firm-Level Exports and Heterogeneity," Working papers 660, Banque de France.
    11. Soon, Byung Min & Thompson, Wyatt, 2016. "Estimating Import Demand Functions in Major Beef Importing Countries by Bayesian Hierarchical Linear Model," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235735, Agricultural and Applied Economics Association.

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