Exploring the intensive and extensive margins of world trade

Felbermayr, Gabriel und Kohler, Wilhelm K. (2004): Exploring the intensive and extensive margins of world trade. CESifo Working Paper,

Abstract

World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time (intensive margin). But trade may also increase if a trading bilateral relationship is newly established between countries that have not traded with each other in the past (extensive margin). We provide an empirical dissection of post-World-War- II growth in manufacturing world trade along these two margins. We propose a "cornersolutions- version" of the gravity model to explain movements on both margins. A Tobit estimation of this model resolves the so-called "distance-puzzle". It also finds more convincing evidence than recent literature that WTO-membership enhances trade.

• Dokumententyp: Paper
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > CESifo-Professur für Außenwirtschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: F12, F15
• Sprache: Englisch