Technology, Geography, and Trade

Technology, Geography, and Trade

We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting i...

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Veröffentlicht in:Econometrica 2002-09, Vol.70 (5), p.1741-1779
Hauptverfasser: Eaton, Jonathan, Kortum, Samuel
Format: Artikel
Sprache:eng
Schlagworte:
Applications
Applied sciences
bilateral
Bilateral relations
Bilateralism
Commodities
Comparative advantage
Countries
Econometrics
Economic models
Exact sciences and technology
Expenditures
Exports
General economic equilibrium
Geography
gravity
Imports
Insurance, economics, finance
integration
International trade
Mathematics
Monopolistic competition
OECD
Operational research and scientific management
Operational research. Management science
Parametric inference
Parametric models
Preferences
Prices
Probability and statistics
Sciences and techniques of general use
Statistics
Studies
Tariffs
Technology
Trade
Trade barriers
Trade development
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Beschreibung
Zusammenfassung:We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it). We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990. We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction.
ISSN:0012-9682
1468-0262
DOI:10.1111/1468-0262.00352