External Imbalances and the Extensive Margin of Trade

Vahagn Galstyan and Philip Lane

Economic Notes, 2008, vol. 37, issue 3, 241-257

Abstract: We quantify the role of the extensive margin in the recent trade dynamics of selected countries that are running large and persistent trade imbalances. We find that the role of the extensive margin is quite substantial, although it varies in significance across the countries in the sample. Finally, we highlight differences in behaviour between the fixed‐varieties and varieties‐adjusted terms of trade.

Date: 2008
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Citations: View citations in EconPapers (19)

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https://doi.org/10.1111/j.1468-0300.2008.00200.x

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Working Paper: External Imbalances and the Extensive Margin of Trade (2008)
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