IDEAS home Printed from https://ideas.repec.org/p/zag/wpaper/0805.html
   My bibliography  Save this paper

On the Impacts of Economic Freedom on International Trade Flows: Asymmetries and Freedom Components

Author

Listed:
  • Robert J. Sonora

    () (Department of Economics, School of Business Administration, Fort Lewis College)

Abstract

This paper employs a gravity equation to estimate the effects of economic freedom on U.S. consumer exports and imports for 131 countries over the years 2000 - 2005. Using the newly updated Fraser Institute's Economic Freedom of the World Index, we find that increased economic freedom in the rest of the world would increase the United States' overall trade volume. We also consider whether imports and exports are affected asymmetrically with respect to income, transaction costs, and economic freedom. We find considerable differences in how these variables affect imports and exports of consumer goods. Our results also give some insight into how economic freedom might affect the U.S. trade position.

Suggested Citation

  • Robert J. Sonora, 2008. "On the Impacts of Economic Freedom on International Trade Flows: Asymmetries and Freedom Components," EFZG Working Papers Series 0805, Faculty of Economics and Business, University of Zagreb.
  • Handle: RePEc:zag:wpaper:0805
    as

    Download full text from publisher

    File URL: http://web.efzg.hr/repec/pdf/Clanak%2008-05.pdf
    File Function: First version, 2008
    Download Restriction: no

    More about this item

    Keywords

    gravity model; trade flows; trade balance;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zag:wpaper:0805. 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: (WPS). General contact details of provider: http://edirc.repec.org/data/fefzghr.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.