The Impacts of GATT/WTO on Firm-level Trade Structure: 1991-2017

Pao-Li Chang (), Renjing Chen () and Wei Jin ()
Additional contact information
Pao-Li Chang: Singapore Management University, Postal: School of Economics, Singapore Management University, 90 Stamford Road, Singapore 178903
Renjing Chen: Wuhan University, Postal: School of Economics and Management, Wuhan University, 299 Bayi Road, Wuchang District, Wuhan,, Hubei Province, P.R. China, 430072
Wei Jin: Nankai University, Postal: Center for Transnational Studies and Institute of International Economics, School of Economics, Nankai, University, 94 Weijin Road, Tianjin, 300071, P.R. China

No 5-2022, Economics and Statistics Working Papers from Singapore Management University, School of Economics

Abstract: In this paper, we develop an estimation procedure to identify the partial (direct) effects of the GATT/WTO membership on the variable and the fixed trade cost, respectively. This extends the techniques of Anderson and Van Wincoop (2003) on the structural relationship of multilateral resistance terms and of Helpman, Melitz and Rubinstein (2008) on the structural modelling of trade incidence. We then develop a general equilibrium framework (that allows the presence of zero trade) to simulate the impact of variable, fixed, and total trade cost changes on the firm-level trade structure (including bilateral export productivity cutoff, weighted/unweighted extensive margin of export, intensive margin, and the mass of active firms) and the aggregate welfare, due to the GATT/WTO system (given the trade cost effects estimated from the first stage), for the period 1991–2017.

Keywords: Firm Entry/Exit; Truncated Pareto; Identi cation of Fixed and Variable Trade Costs; Simulation of Counterfactual Changes in Active/Inactive Trading Relationship; Quantitative Welfare Analysis (search for similar items in EconPapers)
JEL-codes: F13 F14 F17 F61 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2022-04-27
New Economics Papers: this item is included in nep-int and nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ink.library.smu.edu.sg/soe_research/2612/ Full text (text/html)

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:ris:smuesw:2022_005

Access Statistics for this paper

More papers in Economics and Statistics Working Papers from Singapore Management University, School of Economics 90 Stamford Road, Sigapore 178903. Contact information at EDIRC.
Bibliographic data for series maintained by Cheong Pei Qi ( this e-mail address is bad, please contact ).