Latent Exports: Almost Ideal Gravity and Zeros

Autor:	James E. Anderson, Penglong Zhang
Rok vydání:	2022
Předmět:	Economics and Econometrics Social Sciences (miscellaneous)
Zdroj:	The Review of Economics and Statistics. :1-45
ISSN:	1530-9142 0034-6535
Popis:	Export promotion at the extensive margin is a key concern of governments. We develop measures of how far firms in origin sectors are from break-even entry in destination markets. The measure is based on Almost Ideal gravity featuring heterogeneous price and income elasticities. Tobit estimation of 2006 trade flows for 75 countries and 25 sectors generates Latent Trade Bias (LTB) – the latent (projected) trade share of non-partners minus the as-if-frictionless trade share. Explained LTB variance decomposition shows that variable trade costs (distance and tariffs together) account for zero flows more than do fixed trade costs (entry cost) and income variation.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::24daec6821253cceb6ef8f32c1622846 https://doi.org/10.1162/rest_a_01251 Zobrazit plný text záznamu