Per capita income and the extensive margin of bilateral trade

The Rise of Trade Volumes, the Origin-Margin, and Per Capita Income

Recent empirical literature documents the existence of an origin-margin in international trade: importers tend to increase the number of source countries per imported good. Along various dimensions, this trend for diversi…cation strongly correlates with the increase in trade volumes. Existing explanations of the rise of world trade volumes cannot account for that parallel development. This pape...

Similarity of Income Distributions and the Extensive and Intensive Margin of Bilateral Trade Flows

This paper investigates empirically how similarity of demand structures – approximated by similarity of income distributions – affects trade patterns along both the extensive and intensive margin. The idea that similarity of demand structures intensifies trade goes back to the well-known Linder hypothesis. Based on a sample of 102 countries, I find that bilateral trade volumes are increasing in...

Distribution of per Capita Income in Georgia

Per Capita Income and the Quality and Variety of Imports

We investigate how the division of aggregate income into per capita income and population affects the margins of imports. In the first part, we use data on imports of 123 countries to document a positive relationship between per capita income and both the extensive and quality margin of imports, for a given level of aggregate GDP. These relations hold at various levels of disaggregation. While ...

The Effects of Governance Indicators on Per Capita Income, Investment and Employment in Selected Mena Countries

Governance is a way of exercising power in economic and social resource management of a country. Good governance criteria have different weights and relation with regard to the conditions and information of any country. This study is a descriptive survey and has been carried out to calculate the coefficients and weights of each indicator of good governance in Mena countries and identification o...