International Friends and Enemies

Benny Kleinman, Ernest Liu and Stephen Redding
Additional contact information
Benny Kleinman: Princeton University
Ernest Liu: Princeton University

Working Papers from Princeton University. Economics Department.

Abstract: We develop sufficient statistics of countries’ bilateral income and welfare exposure to foreign productivity shocks that are exact for small shocks in the class of models with a constant trade elasticity. For large shocks, we characterize the quality of the approximation, and show it to be almost exact. We compute these sufficient statistics for over 140 countries from 1970-2012. We show that our exposure measures depend on market-size, cross-substitution and cost of living effects. As countries become greater economic friends in terms of welfare exposure, they become greater political friends in terms of United Nations voting and strategic rivalries.

Keywords: Productivity Growth; Trade; welfare (search for similar items in EconPapers)
JEL-codes: F14 F15 F50 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-ban and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://scholar.princeton.edu/sites/default/files/ ... es/nber-wp-27587.pdf

Related works:
Journal Article: International Friends and Enemies (2024)
Working Paper: International Friends and Enemies (2022)
Working Paper: International friends and enemies (2020)
Working Paper: International Friends and Enemies (2020)
Working Paper: International friends and enemies (2020)
Working Paper: International Friends and Enemies (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2020-29

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