Specialization: Pro- and Anti-globalizing, 1990-2002

James Anderson and Yoto Yotov

No 16301, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Specialization alters the incidence of manufacturing trade costs to buyers and sellers, with pro-and anti-globalizing effects on 76 countries from 1990-2002. The structural gravity model yields measures of Constructed Home Bias (the ratio of predicted local trade to predicted frictionless local trade) and the Total Factor Productivity effect of changing incidence. A bit more than half the world's countries experience declining CHB and rising TFP. The effects are big for the outliers. A novel test of structural gravity provides striking confirmation, validating both the CHB and TFP measures that rely on it here, and the large gravity literature that relies on it elsewhere.

JEL-codes: F10 F15 R10 R40 (search for similar items in EconPapers)
Date: 2010-08
Note: IFM ITI PR
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Citations: View citations in EconPapers (59)

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Working Paper: Specialisation: Pro and Anti-Globalizing 1990-2002 (2010)
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