Exploring the Intensive and Extensive Margins of World Trade
Gabriel Felbermayr () and
No 1276, CESifo Working Paper Series from CESifo Group Munich
World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time (intensive margin). But trade may also increase if a trading bilateral relationship is newly established between countries that have not traded with each other in the past (extensive margin). We provide an empirical dissection of post-World-War-II growth in manufacturing world trade along these two margins. We propose a “corner-solutions-version” of the gravity model to explain movements on both margins. A Tobit estimation of this model resolves the so-called “distance-puzzle”. It also finds more convincing evidence than recent literature that WTO-membership enhances trade.
Keywords: bilateral trade; globalization; globalisation; gravity model (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (26) Track citations by RSS feed
Downloads: (external link)
http://www.cesifo-group.de/portal/page/portal/DocB ... 9/cesifo1_wp1276.pdf (application/pdf)
Chapter: Exploring the Intensive and Extensive Margins of World Trade (2014)
Working Paper: Exploring the intensive and extensive margins of world trade (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ces:ceswps:_1276
Access Statistics for this paper
More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Series data maintained by Klaus Wohlrabe ().