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GTAP Resources: Resource Display

GTAP Resource #3089

"Entry barriers and the extensive margin: Estimating trade restrictiveness from trade flows and lack thereof"
by Nordas, Hildegunn, Sebastien Miroudot and Rainer Lanz


Abstract
This paper provides a first attempt to estimate services trade costs directly from trade data. It builds on two recent papers, the first by Helpman, Melitz and Rubinstein (2008) (HMR), and the second by Novy (2008). Both papers provide innovative ways of assessing overall trade restrictiveness. The beauty of the HMR paper is that the only trade data needed is information on whether or not a country pair trades with each other in the sector in question. In a situation where bilateral services trade data are not as readily available as one might wish for, this seems like a great advantage. In order to check whether it is the methodology or the data that creates problems, the HMR probit methodology is applied to goods trade as well. Here the results are more plausible and it thus appears that the problem is mainly on the data side. The Novy methodology is both simple and produces plausible results. Here trade costs can be estimated based on information on two-way bilateral trade and internal trade in the sector of interest. The paper concludes that at this stage the Novy methodology can be used as a supplement to other sources of information on trade costs.


Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Version:
Created: Nordas, H. (4/15/2009)
Updated: Nordas, H. (4/15/2009)
Visits: 1,638
- Trade in services


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