The implications of re-exports for gravity equation estimation, NAFTA and Brexit
| Autor: | Maureen Lankhuizen, Mark Thissen |
|---|---|
| Přispěvatelé: | Spatial Economics |
| Rok vydání: | 2019 |
| Předmět: |
Geography
Planning and Development constrained non-linear optimisation World Input–Output Database (WIOD) 0211 other engineering and technologies 02 engineering and technology WIOD re-exports North American Free Trade Agreement (NAFTA) SDG 17 - Partnerships for the Goals 0502 economics and business Earth and Planetary Sciences (miscellaneous) Econometrics Economics Gravity equation US–Mexico trade 050207 economics bilateral trade Commercial policy Estimation NAFTA 05 social sciences 021107 urban & regional planning SDG 10 - Reduced Inequalities Bilateral trade Brexit trade policy Gravity model of trade gravity equations constrained non-linear optimization Statistics Probability and Uncertainty General Economics Econometrics and Finance |
| Zdroj: | Lankhuizen, M B M & Thissen, M 2019, ' The implications of re-exports for gravity equation estimation, NAFTA and Brexit ', Spatial Economic Analysis, vol. 14, no. 4, pp. 384-403 . https://doi.org/10.1080/17421772.2019.1623419 Spatial Economic Analysis, 14(4), 384-403. Routledge |
| ISSN: | 1742-1772 |
| DOI: | 10.6084/m9.figshare.8847857.v1 |
| Popis: | This paper illustrates the importance of taking into account re-exports. It shows that not taking into account re-exports causes estimates from the gravity model to be biased. It also considers the implications of re-exports for two current policy events. It is shown that the United States actually ran a net trade surplus in the North American Free Trade Agreement (NAFTA). Second, it is argued there may be additional costs for the UK economy from Brexit that are not addressed in earlier studies. This paper derives bilateral trade flows corrected for re-exports for a large number of countries at a detailed product level, using the World Input–Output Database (WIOD). Through a constrained non-linear optimization procedure, complete origin–destination matrices of re-exports are determined. Trade is subsequently restored to its most likely origin and destination. |
| Databáze: | OpenAIRE |
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