Trade Flows, Multilateral Resistance, and Firm Heterogeneity

WP/12/297

Nopic
We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selection into trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting firms takes a gravity form, such that the extensive margin is also affected by multilateral resistance. We develop Taylor... READ MORE...

Publication date: December 2012
ISBN 9781475574081
$18.00

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Publication date: December 2012

English