External Imbalances and the Extensive Margin of Trade

17 Pages Posted: 17 Jan 2009

See all articles by Vahagn Galstyan

Vahagn Galstyan

Trinity College (Dublin)

Philip R. Lane

Trinity College (Dublin) - Department of Economics; Centre for Economic Policy Research (CEPR); Central Bank of Ireland

Abstract

We quantify the role of the extensive margin in the recent trade dynamics of selected countries that are running large and persistent trade imbalances. We find that the role of the extensive margin is quite substantial, although it varies in significance across the countries in the sample. Finally, we highlight differences in behaviour between the fixed-varieties and varieties-adjusted terms of trade.

Suggested Citation

Galstyan, Vahagn and Lane, Philip R., External Imbalances and the Extensive Margin of Trade. Economic Notes, Vol. 37, Issue 3, pp. 241-257, November 2008. Available at SSRN: https://ssrn.com/abstract=1327364 or http://dx.doi.org/10.1111/j.1468-0300.2008.00200.x

Vahagn Galstyan (Contact Author)

Trinity College (Dublin) ( email )

2-3 College Green
Dublin, Leinster
Ireland

Philip R. Lane

Trinity College (Dublin) - Department of Economics ( email )

Trinity College
Dublin 2
Ireland
+353 1 608 2259 (Phone)
+353 1 677 2503 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

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