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Gains from Domestic versus International Trade: Evidence from the U.S

Hakan Yilmazkuday

No 2001, Working Papers from Florida International University, Department of Economics

Abstract: Using varieties of a rich model that considers sectoral heterogeneity and input-output linkages, this paper shows that the overall welfare gains of a region within a country can be decomposed into domestic versus international welfare gains from trade. Empirical results based on sector- and state-level data from the U.S. suggest that about 94 percent of the overall welfare gains of a state is due to domestic trade with other states. The ocean states gain from international trade about two times the Great Lake states and about three times the landlocked states.

Keywords: Welfare Gains; Domestic Trade; Sectoral Heterogeneity; State-Level Analysis (search for similar items in EconPapers)
JEL-codes: F12 F14 R13 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2020-02
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://economics.fiu.edu/research/pdfs/2020_working_papers/2001.pdf First version, 2020 (application/pdf)

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