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Title:Trade and Decentralization PDF Logo
Authors:Kessing, Sebastian G.
Kalamova, Margarita
Issue Date:2010
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Empirical Models of Trade Policy G5-V1
Abstract:Globalization of economic activities and decentralization of government organization are occurring simultaneously. We consider the implications of government decentralization for intra-national and international trade. Decentralization can create barriers to intra-national trade, but can make international trade relatively more attractive. Imports as substitutes to inbound foreign direct investment suggest a stronger positive effect of decentralization on imports relative to exports. Our empirical results from a standard gravity model find supportive evidence for these conjectures.
Subjects:decentralization
federalism
trade
gravity equation
border effect
JEL:F15
H77
F19
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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