International Trade in Variety and Domestic Production
Welfare gains from increasing product variety are an important� source of the gains from international trade. Recent empirical studies have largely focused on measuring the gains from an increased variety of imports. Trade theory, however,� suggests that international trade heavily affects the variety of domestically� produced goods as well. To overcome the typical data limitations on domestic varieties, we employ the number of domestic� establishments� as a proxy of the number of domestic varieties and include information on business dynamics� to assess the importance of new and disappearing varieties.� Our results suggest that for U.S. manufacturing, losses in domestic varieties from 1992 to 2006 are substantial and outweigh the gains from increased imported varieties.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://wwz.unibas.ch
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bsl:wpaper:2011/03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ)
If references are entirely missing, you can add them using this form.