Abstract

http://ssrn.com/abstract=997999
 
 

References (40)



 
 

Citations (59)



 


 



Zeros, Quality and Space: Trade Theory and Trade Evidence


Richard E. Baldwin


University of Geneva - Graduate Institute of International Studies (HEI); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

James Harrigan


University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)

July 2007

NBER Working Paper No. w13214

Abstract:     
Bilateral, product-level data exhibit a number of strong patterns that can be used to evaluate international trade theories, notably the spatial incidence of “export zeros” (correlated with distance and importer size), and of export unit values (positively related to distance). We show that leading theoretical trade models fail to explain at least some of these facts, and propose a variant of the Melitz model that can account for all the facts. In our model, high quality firms are the most competitive, with heterogeneous quality increasing with firms’ heterogeneous cost.

Number of Pages in PDF File: 61

working papers series


Download This Paper

Date posted: July 3, 2007  

Suggested Citation

Baldwin, Richard E. and Harrigan, James, Zeros, Quality and Space: Trade Theory and Trade Evidence (July 2007). NBER Working Paper No. w13214. Available at SSRN: http://ssrn.com/abstract=997999

Contact Information

Richard E. Baldwin
University of Geneva - Graduate Institute of International Studies (HEI) ( email )
PO Box 136
Geneva, CH-1211
Switzerland
+41 22 908 5933 (Phone)
+41 22 733 3049 (Fax)
HOME PAGE: http://www.hei.unige.ch/~baldwin/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
James Harrigan (Contact Author)
University of Virginia (UVA) - Department of Economics ( email )
P.O. Box 400182
Charlottesville, VA 22904-4182
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 970
Downloads: 71
Download Rank: 183,778
References:  40
Citations:  59

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.312 seconds