Growth and Trade: A Structural Estimation Framework

Yoto Yotov, Mario Larch and James Anderson

No 851, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: We build and quantify a structural general equilibrium model of growth and trade. Trade affects growth through changes in consumer and producer prices that in turn stimulate or impede physical capital accumulation. At the same time, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs. The model combines structural gravity with a simple capital accumulation specification of the transition between steady states. An intuitive, self-sufficient econometric system results. Counterfactual experiments based on the estimated model give evidence for strong causal relationships between growth and trade.

Date: 2015
New Economics Papers: this item is included in nep-gro and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2015/paper_851.pdf (application/pdf)

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:red:sed015:851

Access Statistics for this paper

More papers in 2015 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().