Trade, Domestic Frictions, and Scale Effects

Because of scale effects, idea-based growth models imply that larger countries should be much richer than smaller ones. New trade models share the same counterfactual feature. In fact, new trade models exhibit other counterfactual implications associated with scale effects: import shares decrease an...

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Autores principales:	Ramondo, Natalia, Rodríguez-Clare, Andrés, Saborío-Rodríguez, Milagro
Formato:	Artículo
Lenguaje:	Inglés
Publicado:	2020
Materias:	ECONOMÍA COMERCIO CRECIMIENTO PRODUCTIVIDAD ANALISIS DE COSTOS GEOGRAFIA ECONOMICA INNOVACIONES COMERCIO INTERIOR EFECTOS TECNOLOGIA
Acceso en línea:	http://dx.doi.org/10.1257/aer.20141449 https://repositorio.catie.ac.cr/handle/11554/9537

id	RepoCATIE9537
record_format	dspace
spelling	RepoCATIE95372021-12-22T19:09:50Z Trade, Domestic Frictions, and Scale Effects Ramondo, Natalia Rodríguez-Clare, Andrés Saborío-Rodríguez, Milagro ECONOMÍA COMERCIO CRECIMIENTO PRODUCTIVIDAD ANALISIS DE COSTOS GEOGRAFIA ECONOMICA INNOVACIONES COMERCIO INTERIOR EFECTOS TECNOLOGIA Because of scale effects, idea-based growth models imply that larger countries should be much richer than smaller ones. New trade models share the same counterfactual feature. In fact, new trade models exhibit other counterfactual implications associated with scale effects: import shares decrease and relative income levels increase too steeply with country size. We argue that these implications are largely a result of the standard assumption that countries are fully integrated domestically. We depart from this assumption by treating countries as collections of regions that face positive costs to trade among themselves. The resulting model is largely consistent with the data. 2020-08-27T21:17:15Z 2020-08-27T21:17:15Z 2016-10 Artículo http://dx.doi.org/10.1257/aer.20141449 https://repositorio.catie.ac.cr/handle/11554/9537 en American Economic Review, Volumen 106, Number 10 (Octubre 2016) pages 3159–3184 info:eu-repo/semantics/openAccess application/pdf
institution	Centro Agronómico Tropical de Investigación y Enseñanza
collection	Repositorio CATIE
language	Inglés
topic	ECONOMÍA COMERCIO CRECIMIENTO PRODUCTIVIDAD ANALISIS DE COSTOS GEOGRAFIA ECONOMICA INNOVACIONES COMERCIO INTERIOR EFECTOS TECNOLOGIA
spellingShingle	ECONOMÍA COMERCIO CRECIMIENTO PRODUCTIVIDAD ANALISIS DE COSTOS GEOGRAFIA ECONOMICA INNOVACIONES COMERCIO INTERIOR EFECTOS TECNOLOGIA Ramondo, Natalia Rodríguez-Clare, Andrés Saborío-Rodríguez, Milagro Trade, Domestic Frictions, and Scale Effects
description	Because of scale effects, idea-based growth models imply that larger countries should be much richer than smaller ones. New trade models share the same counterfactual feature. In fact, new trade models exhibit other counterfactual implications associated with scale effects: import shares decrease and relative income levels increase too steeply with country size. We argue that these implications are largely a result of the standard assumption that countries are fully integrated domestically. We depart from this assumption by treating countries as collections of regions that face positive costs to trade among themselves. The resulting model is largely consistent with the data.
format	Artículo
author	Ramondo, Natalia Rodríguez-Clare, Andrés Saborío-Rodríguez, Milagro
author_facet	Ramondo, Natalia Rodríguez-Clare, Andrés Saborío-Rodríguez, Milagro
author_sort	Ramondo, Natalia
title	Trade, Domestic Frictions, and Scale Effects
title_short	Trade, Domestic Frictions, and Scale Effects
title_full	Trade, Domestic Frictions, and Scale Effects
title_fullStr	Trade, Domestic Frictions, and Scale Effects
title_full_unstemmed	Trade, Domestic Frictions, and Scale Effects
title_sort	trade, domestic frictions, and scale effects
publishDate	2020
url	http://dx.doi.org/10.1257/aer.20141449 https://repositorio.catie.ac.cr/handle/11554/9537
work_keys_str_mv	AT ramondonatalia tradedomesticfrictionsandscaleeffects AT rodriguezclareandres tradedomesticfrictionsandscaleeffects AT saboriorodriguezmilagro tradedomesticfrictionsandscaleeffects
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Trade, Domestic Frictions, and Scale Effects

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