Trade Theory with Numbers: Quantifying the Consequences of Globalization
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Costinot_Trade theory.pdf
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716.95 KB
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Adobe PDF
Checksum (MD5)
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Author(s)
Costinot, Arnaud
Rodríguez-Clare, Andrés
Date Issued
February 2014
Journal
Handbook of International Economics
Publisher
Elsevier
Citation
Costinot, Arnaud, and Andrés Rodríguez-Clare. “Trade Theory with Numbers: Quantifying the Consequences of Globalization.” Handbook of International Economics (2015): 197–261.
Version
Author's final manuscript
Abstract
We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying theme of our survey is methodological. We rely on gravity models and demonstrate how they can be used for counterfactual analysis. We highlight how various economic considerations—market structure, firm-level heterogeneity, multiple sectors, intermediate goods, and multiple factors of production—affect the magnitude of the gains from trade liberalization. We conclude by discussing a number of outstanding issues in the literature as well as alternative approaches for quantifying the consequences of globalization.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1016/b978-0-444-54314-1.00004-5
