@techreport{Felbermayr2004Exploring,
abstract = {World trade evolves at two margins. Where a bilateral trading relationship already exists it
may increase through time (intensive margin). But trade may also increase if a trading
bilateral relationship is newly established between countries that have not traded with each
other in the past (extensive margin). We provide an empirical dissection of post-World-War-
II growth in manufacturing world trade along these two margins. We propose a ?cornersolutions-
version? of the gravity model to explain movements on both margins. A Tobit
estimation of this model resolves the so-called ?distance-puzzle?. It also finds more
convincing evidence than recent literature that WTO-membership enhances trade.},
author = {Gabriel J. Felbermayr and Wilhelm K. Kohler},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F12; F15; 330; bilateral trade; globalization; gravity model; Au\ss{}enwirtschaft; Internationale Wirtschaftsbeziehungen; Globalisierung; Gravitationsmodell; WTO-Beitritt; Sch\"{a}tzung; Welt},
language = {eng},
number = {1276},
title = {Exploring the intensive and extensive margins of world trade},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18914},
year = {2004}
}
