High Trade Costs and Their Consequences: An Estimated Dynamic Model of African Agricultural Storage and Trade

High Trade Costs and Their Consequences: An Estimated Dynamic Model of African Agricultural Storage and Trade

How large are trade costs in the world’s poorest countries and what are their consequences? I explore this question using a new dataset of monthly prices and production of 6 staple grains from 2003 to 2013 in 230 market catchment areas covering all 42 countries of continental subSaharan Africa. Using a new approach to identify cost parameters when trade and storage are unobserved, I estimate an...

Asymmetric Trade Costs: Agricultural Trade amongDeveloping andDevelopedCountries

In this article, the reasonswhydeveloping countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the res...

The Role of Preferential Trade Agreement (PTA) between Iran and Malaysia their Intra industry Trade (IIT)

South African Trade Policy Matters : Trade Performance and Trade Policy

South African trade policy has exerted a major influence on the composition and aggregate growth of trade. In the Apartheid period, trade protection seriously impeded both exports and imports, and the economy depended on favorable global commodity price trends to avoid running into an external constraint. South Africa developed a comparative advantage in capital-intensive primary and manufactur...

Trade Costs and Markups∗

We explore the effects of trade costs on markups by building a new model consistent with three stylized facts: exporters charge higher markups, markups increase when starting to export, and domestic and foreign sales are negatively correlated, which suggests decreasing returns. We calibrate the model to Chilean data, and simulate reductions in trade costs. Most markups increase along the intens...