Latent Exports: Almost Ideal Gravity and Zeros

نویسندگان

چکیده

Abstract Export promotion at the extensive margin is a key concern of governments. We develop measures how far firms in origin sectors are from break-even entry destination markets. The measure based on Almost Ideal gravity featuring heterogeneous price and income elasticities. Tobit estimation 2006 trade flows for 75 countries 25 generates Latent Trade Bias (LTB) – latent (projected) share non-partners minus as-if-frictionless share. Explained LTB variance decomposition shows that variable costs (distance tariffs together) account zero more than do fixed (entry cost) variation.

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ژورنال

عنوان ژورنال: The Review of Economics and Statistics

سال: 2022

ISSN: ['0034-6535', '1530-9142']

DOI: https://doi.org/10.1162/rest_a_01251