IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v159y2017icp104-107.html

Entry assumptions and welfare gains from trade

Author

Listed:
  • Nguyen, Hang T.
  • Timoshenko, Olga A.

Abstract

When productivities are not Pareto distributed, welfare gains from trade are not necessarily isomorphic between entry assumptions. Under exogenous entry, the extra adjustment in dividends dampens the relative increase in real wage as trade costs decline, resulting in lower welfare gains than under free entry.

Suggested Citation

  • Nguyen, Hang T. & Timoshenko, Olga A., 2017. "Entry assumptions and welfare gains from trade," Economics Letters, Elsevier, vol. 159(C), pages 104-107.
    • Handle: RePEc:eee:ecolet:v:159:y:2017:i:c:p:104-107
    DOI: 10.1016/j.econlet.2017.07.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176517302896
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2017.07.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-1721, September.
    2. repec:spo:wpmain:info:hdl:2441/6apm7lruv088iagm4rv2c33jtg is not listed on IDEAS
    3. Marc J. Melitz & Stephen J. Redding, 2015. "New Trade Models, New Welfare Implications," American Economic Review, American Economic Association, vol. 105(3), pages 1105-1146, March.
    4. Costas Arkolakis & Arnaud Costinot & Andres Rodriguez-Clare, 2012. "New Trade Models, Same Old Gains?," American Economic Review, American Economic Association, vol. 102(1), pages 94-130, February.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano Bolatto & Massimo Sbracia, 2016. "Deconstructing the Gains from Trade: Selection of Industries vs Reallocation of Workers," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 344-363, May.
    2. Lorenzo Caliendo & Robert C. Feenstra & John Romalis & Alan M. Taylor, 2015. "Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades," NBER Working Papers 21768, National Bureau of Economic Research, Inc.
    3. Esposito, Federico, 2022. "Demand risk and diversification through international trade," Journal of International Economics, Elsevier, vol. 135(C).
    4. Bolatto, Stefano & Moramarco, Graziano, 2023. "Gains from trade and their quantification: Does sectoral disaggregation matter?," International Economics, Elsevier, vol. 174(C), pages 44-68.
    5. Rodrigo Adão & Costas Arkolakis & Sharat Ganapati, 2020. "Aggregate Implications of Firm Heterogeneity: A Nonparametric Analysis of Monopolistic Competition Trade Models," Working Papers 2020-161, Becker Friedman Institute for Research In Economics.
    6. Jha, Priyaranjan & Rodriguez-Lopez, Antonio, 2021. "Monopsonistic labor markets and international trade," European Economic Review, Elsevier, vol. 140(C).
    7. Badis Tabarki, 2020. "International Trade under Monopolistic Competition beyond the CES," Documents de travail du Centre d'Economie de la Sorbonne 20018, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    8. Gouel, Christophe & Jean, Sébastien, 2023. "Love of variety and gains from trade," European Economic Review, Elsevier, vol. 158(C).
    9. Huang, Hanwei & Manova, Kalina & Perello, Oscar & Pisch, Frank, 2024. "Firm heterogeneity and imperfect competition in global production networks," LSE Research Online Documents on Economics 126808, London School of Economics and Political Science, LSE Library.
    10. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).
    11. Edward J. Balistreri & David G. Tarr, 2022. "Welfare gains in the Armington, Krugman and Melitz models: Comparisons grounded on gravity," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1681-1703, October.
    12. Peter Egger & Reto Foellmi & Ulrich Schetter & David Torun, 2023. "Gravity with History: On Incumbency Effects in International Trade," Growth Lab Working Papers 219, Harvard's Growth Lab.
    13. Badis Tabarki, 2020. "International Trade under Monopolistic Competition beyond the CES," Post-Print halshs-02966937, HAL.
    14. Feenstra, Robert C., 2018. "Restoring the product variety and pro-competitive gains from trade with heterogeneous firms and bounded productivity," Journal of International Economics, Elsevier, vol. 110(C), pages 16-27.
    15. Barba Navaretti, Giorgio & Bugamelli, Matteo & Forlani, Emanuele & Ottaviano, Gianmarco, 2024. "It Takes (More Than) a Moment: Estimating Trade Flows with Superstar Exporters," CEPR Discussion Papers 19110, C.E.P.R. Discussion Papers.
    16. Kohler Wilhelm & Jung Benjamin, 2017. "Wie vorteilhaft ist internationaler Handel?: Ein neuer Ansatz zur Vermessung der Gewinne," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 18(1), pages 32-55, April.
    17. Bas, Maria & Mayer, Thierry & Thoenig, Mathias, 2017. "From micro to macro: Demand, supply, and heterogeneity in the trade elasticity," Journal of International Economics, Elsevier, vol. 108(C), pages 1-19.
    18. Alessandra Bonfiglioli & Rosario Crinò & Gino Gancia, 2019. "Trade, Finance, and Endogenous Firm Heterogeneity," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 79-130.
    19. Lixin Tang, 2020. "Entrepreneur Income Inequality, Aggregate Saving and the Gains from Trade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 38, pages 273-295, October.
    20. Scott L Baier & Jeffrey H Bergstrand & Matthew W Clance, 2017. "Heterogeneous economic integration agreements' effects, gravity, and welfare," Discussion Papers 2017-05, University of Nottingham, GEP.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:159:y:2017:i:c:p:104-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.