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EU Enlargement and the New Goods Margin in Austrian Trade

  • Dalton, John

Using the methodology developed in Kehoe and Ruhl (2013), I measure the change in the extensive, or new goods, margin of trade between Austria and the ten new entrants to the European Union in 2004. On average, the new goods account for 42% of the bilateral trade flow after enlargement. A time series measure shows growth in the new goods margin coincides with the 2004 enlargement, which provides evidence on the importance of the role played by the new goods margin in the growth in trade following a trade liberalization.

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File URL: http://mpra.ub.uni-muenchen.de/50353/1/MPRA_paper_50353.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50353.

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Date of creation: Sep 2013
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Handle: RePEc:pra:mprapa:50353
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  1. Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358 - 392.
  2. David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," 2004 Meeting Papers 530, Society for Economic Dynamics.
  3. Richard Baldwin Virginia Di Nino, 2006. "Euros and zeros: The common currency effect on trade in new goods," IHEID Working Papers 21-2006, Economics Section, The Graduate Institute of International Studies, revised 31 Oct 2006.
  4. Purba Mukerji, 2009. "Trade Liberalization And The Extensive Margin," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(2), pages 141-166, 05.
  5. Dalton, John T., 2014. "The new goods margin in Japanese–Chinese trade," Japan and the World Economy, Elsevier, vol. 31(C), pages 8-13.
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