Transitional Growth and Trade with Frictions: A Structural Estimation Framework
James Anderson,
Mario Larch and
Yoto Yotov
The Economic Journal, 2020, vol. 130, issue 630, 1583-1607
Abstract:
We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory maps to an econometric system that identifies the parameters of the model and establishes causal links between trade, capital accumulation and income. Counterfactual trade liberalisation magnifies static gains by a dynamic path multiplier of 1.8.
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (45)
Downloads: (external link)
http://hdl.handle.net/10.1093/ej/ueaa020 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:econjl:v:130:y:2020:i:630:p:1583-1607.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Economic Journal is currently edited by Francesco Lippi
More articles in The Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press () and ().