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Analysis of Bilateral Trade Patterns With Panel Data
Author(s) -
Jensen Paul E.
Publication year - 2000
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00207
Subject(s) - economics , bilateral trade , simple (philosophy) , panel data , contrast (vision) , product differentiation , international economics , trade barrier , international trade , econometrics , microeconomics , geography , computer science , philosophy , archaeology , epistemology , artificial intelligence , cournot competition , china
Bilateral trade flows are examined to investigate whether trade patterns are consistent with a simple model of trade in differentiated products. In contrast to previous results in the literature, it is shown that the simple model of trade in differentiated products is often not appropriate for trade among the poor nations. Demand differences among the poor countries are shown to be at least a partial explanation for the deviations from the theoretical predictions.