Analysis of Bilateral Trade Patterns With Panel Data

Paul Jensen

Review of International Economics, 2000, vol. 8, issue 1, 86-99

Abstract: Bilateral trade flows are examined to investigate whether trade patterns are consistent with a simple model of trade in differentiated products. In contrast to previous results in the literature, it is shown that the simple model of trade in differentiated products is often not appropriate for trade among the poor nations. Demand differences among the poor countries are shown to be at least a partial explanation for the deviations from the theoretical predictions.

Date: 2000
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