Why trade matters after all

Ralph Ossa

Journal of International Economics, 2015, vol. 97, issue 2, 266-277

Abstract: I show that accounting for cross-industry variation in trade elasticities greatly magnifies the estimated gains from trade. The main idea is as simple as it is general: while imports in the average industry do not matter too much, imports in some industries are critical to the functioning of the economy, so that a complete shutdown of international trade is very costly overall.

Keywords: Gains from trade; Multi-industry model; Trade elasticity (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (159)

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Working Paper: Why Trade Matters After All (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:97:y:2015:i:2:p:266-277

DOI: 10.1016/j.jinteco.2015.07.002

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