IDEAS home Printed from https://ideas.repec.org/p/fip/fedgif/390.html
   My bibliography  Save this paper

Why has trade grown faster than income?

Author

Listed:
  • Andrew K. Rose

Abstract

Trade of the OECD countries has grown faster than income during the postwar period. This paper tests a number of different hypotheses for the observed growth in the trade/income ratio. For small open economies, increases in real output and international reserves, as well as declines in tariff rates are associated with growth in the ratio. There are important differences in the behavior of the trade ratio across time and country size.

Suggested Citation

  • Andrew K. Rose, 1990. "Why has trade grown faster than income?," International Finance Discussion Papers 390, Board of Governors of the Federal Reserve System (U.S.), revised 1990.
    • Handle: RePEc:fip:fedgif:390
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/ifdp/1990/390/ifdp390.pdf
    Download Restriction: no
    File URL: http://www.federalreserve.gov/pubs/ifdp/1990/390/default.htm
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kei-Mu Yi & Dana Rapoport & David L. Hummels, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue jun, pages 79-99.
    2. Céline Carrère & Christopher Grigoriou, 2014. "Can Mirror Data Help To Capture Informal International Trade?," UNCTAD Blue Series Papers 65, United Nations Conference on Trade and Development.
    3. Liu, Xiaoyun & Xin, Xian, 2011. "Transportation uncertainty and international trade," Transport Policy, Elsevier, vol. 18(1), pages 156-162, January.
    4. Terborgh, Andrew G., 2003. "The post-war rise of world trade: does the Bretton Woods System deserve credit?," Economic History Working Papers 22351, London School of Economics and Political Science, Department of Economic History.
    5. Kislaya Prasad, 2012. "Economic Liberalization and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 55(4), pages 925-948.
    6. Benjamin Bridgman, 2008. "Energy Prices and the Expansion of World Trade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 904-916, October.
    7. Jeffrey A Frankel, 1993. "Is there a Currency Bloc in the Pacific?," RBA Annual Conference Volume (Discontinued), in: Adrian Blundell-Wignall (ed.), The Exchange Rate, International Trade and the Balance of Payments, Reserve Bank of Australia.
    8. Jun Ishii & Kei-Mu Yi, 1997. "The growth of world trade," Research Paper 9718, Federal Reserve Bank of New York.
    9. repec:spo:wpecon:info:hdl:2441/2537 is not listed on IDEAS
    10. Suleiman ABU-BADER & Aamer S. ABU-QARN, 2008. "The Impact Of Gatt On International Trade: Evidence From Structural Break Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 23-36.
    11. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    12. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    13. Mauricio Cárdenas & Camilo García, 2005. "El modelo gravitacional y el TLC entre Colombia y Estados Unidos," Coyuntura Económica, Fedesarrollo, June.
    14. Robert E. Kohn & Paul E. Chambers, 2000. "Pollution Abatement and International Self-Sufficiency," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 213-219, Spring.
    15. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    16. Guillaume Daudin & Paola Monperrus-Veroni & Christine Rifflart & Danielle Schweisguth, 2006. "Le commerce extérieur en valeur ajoutée," Revue de l'OFCE, Presses de Sciences-Po, vol. 98(3), pages 129-165.
    17. Céline Carrère & Maurice Schiff, 2005. "On the Geography of Trade. Distance is Alive and Well," Revue économique, Presses de Sciences-Po, vol. 56(6), pages 1249-1274.
    18. Suleiman Abu‐Bader & Aamer S. Abu‐Qarn, 2010. "Trade Liberalization or Oil Shocks: Which Better Explains Structural Breaks in International Trade Ratios?," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 250-264, May.
    19. Logan T. Lewis & Ryan Monarch & Michael J. Sposi & Jing Zhang, 2018. "Structural Change and Global Trade," International Finance Discussion Papers 1225, Board of Governors of the Federal Reserve System (U.S.).
    20. Ben-David, Dan & Papell, David H., 1997. "International trade and structural change," Journal of International Economics, Elsevier, vol. 43(3-4), pages 513-523, November.
    21. Mihalis Chasomeris, 2009. "On The (Mis)Measurement Of International Transport Costs," South African Journal of Economics, Economic Society of South Africa, vol. 77(1), pages 148-161, March.
    22. Bridgman, Benjamin, 2012. "The rise of vertical specialization trade," Journal of International Economics, Elsevier, vol. 86(1), pages 133-140.
    23. Jonathan D. Ostry & Andrew K. Rose, 1989. "Tariffs and the macroeconomy: evidence from the USA," International Finance Discussion Papers 365, Board of Governors of the Federal Reserve System (U.S.), revised 1989.
    24. repec:aoj:econom:2018:p:40-53 is not listed on IDEAS
    25. Sayeeda Bano, 2014. "An Empirical Examination of Trade Relations between New Zealand and China in the Context of a Free Trade Agreement," Working Papers in Economics 14/04, University of Waikato.

    More about this item

    Keywords

    Income; International 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:fip:fedgif:390. 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: (Ryan Wolfslayer ; Keisha Fournillier). General contact details of provider: http://edirc.repec.org/data/frbgvus.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.