Gains from Domestic versus International Trade: Evidence from the U.S.

Journal of International Trade & Economic Development, Forthcoming

43 Pages Posted: 3 Jan 2017 Last revised: 10 Dec 2020

See all articles by HAKAN YILMAZKUDAY

HAKAN YILMAZKUDAY

Florida International University (FIU) - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 29, 2019

Abstract

Using varieties of a rich model that considers sectoral heterogeneity and input-output linkages, this paper shows that the overall welfare gains of a region within a country can be decomposed into domestic versus international welfare gains from trade. Empirical results based on sector- and state-level data from the U.S. suggest that about 94 percent of the overall welfare gains of a state is due to domestic trade with other states. The ocean states gain from international trade about two times the Great Lake states and about three times the landlocked states.

Keywords: Welfare Gains, Domestic Trade, Sectoral Heterogeneity, State-Level Analysis

JEL Classification: F12, F14, R13

Suggested Citation

Yilmazkuday, Hakan, Gains from Domestic versus International Trade: Evidence from the U.S. (July 29, 2019). Journal of International Trade & Economic Development, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2892144 or http://dx.doi.org/10.2139/ssrn.2892144

Hakan Yilmazkuday (Contact Author)

Florida International University (FIU) - Department of Economics ( email )

11200 SW 8th Street
Miami, FL 33199
United States

HOME PAGE: http://faculty.fiu.edu/~hyilmazk/

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