Drivers of Global Trade: A Product-Level Investigation

Hakan Yilmazkuday

No 2121, Working Papers from Florida International University, Department of Economics

Abstract: This paper investigates the drivers of global trade at the six-digit product level. The identification is achieved first by estimating the log-linear product-level bilateral trade implications of a model and second by aggregating the fitted estimation results across bilateral countries using Taylor series to obtain global measures in levels for each product. The empirical results suggest that supply-side effects (capturing production or exporting costs in source countries) contribute to changes in global trade more than six times the demand-side effects (capturing economic activity or preferences in destination countries) and more than ten times the effects of bilateral trade costs (capturing bilateral protectionism measures). Several product-level implications follow.

Keywords: Global Trade; Product-Level Analysis; Decomposition (search for similar items in EconPapers)
JEL-codes: F14 F60 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2021-09
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 (1)

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https://economics.fiu.edu/research/pdfs/2021_working_papers/21211.pdf First version, 2021 (application/pdf)

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Journal Article: Drivers of Global Trade: A Product-Level Investigation (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:2121

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