Replication data for: International Trade and Income Differences

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Project Citation:

Waugh, Michael E. Replication data for: International Trade and Income Differences. Nashville, TN: American Economic Association [publisher], 2010. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112382V1

Project Description

Summary: I develop a novel view of the trade frictions between rich and poor countries by arguing that to reconcile bilateral trade volumes and price data within a standard gravity model, the trade frictions between rich and poor countries must be systematically asymmetric, with poor countries facing higher costs to export relative to rich countries. I provide a method to model these asymmetries and demonstrate the merits of my approach relative to alternatives in the trade literature. I then argue that these trade frictions are quantitatively important to understanding the large differences in standards of living and total factor productivity across countries. (JEL F11, F13, F14, O19 )

Scope of Project

JEL Classification:
      F11 Neoclassical Models of Trade
      F13 Trade Policy; International Trade Organizations
      F14 Empirical Studies of Trade
      O19 International Linkages to Development; Role of International Organizations

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Published Versions

V1 [2019-10-11]

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