Disentangling the effects of GATT/WTO on variable and fixed trade costs: Trade status, trade margins, and export sales distribution

• Main Authors: CHANG, Pao-Li, CHEN, Renjing, JIN, Wei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Firm Entry/Exit; Truncated Pareto; Identification of Fixed and Variable Trade Costs; Simulation of Counterfactual Changes in Active/Inactive Trading Relationship; Quantitative Welfare Analysis; Growth and Development; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2612; https://ink.library.smu.edu.sg/context/soe_research/article/3611/viewcontent/wtodyn.pdf
• Institution: Singapore Management University

In this paper, we develop an estimation procedure to identify the partial (direct) effects of the GATT/WTO membership on the variable and the fixed trade cost, re-spectively. This extends the techniques of Anderson and Van Wincoop (2003) on the structural relationship of multilateral resistance terms...