Trade Theory with Numbers: Quantifying the Consequences of Globalization

Rodríguez-Clare, Andres and Arnaud Costinot
Authors registered in the RePEc Author Service: Andres Rodriguez-Clare

No 9398, CEPR Discussion Papers from Centre for Economic Policy Research

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.

Keywords: Counterfactual analysis; Globalization; Gravity models; Trade policy; Welfare analysis (search for similar items in EconPapers)
JEL-codes: F11 F12 F13 F15 F17 F60 F62 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (100)

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Related works:
Chapter: Trade Theory with Numbers: Quantifying the Consequences of Globalization (2014)
Working Paper: Trade Theory with Numbers: Quantifying the Consequences of Globalization (2013)
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