Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121036
Authors: 
Frensch, Richard
Year of Publication: 
2009
Series/Report no.: 
FIW Working Paper 39
Abstract: 
Trade policy has well documented effects on trade volumes. Reaching beyond volumes, I explore the impact of European emerging economies' recent institutional trade liberalisation on extensive (i.e., the set of imported goods) versus intensive import margins (volumes per imported good) with highly disaggregated data. Differentiating goods categories by use, I find robust evidence of stronger extensive import margin effects of liberalisation for intermediate and capital goods compared to consumer goods. This identifies an important channel for the link between reforms and growth in transition. The results also support new models of heterogeneous firms and trade, which predict that extensive import margin effects of a country's institutional trade liberalisation should - via lowering fixed costs for rest of the world exporters - increase with decreasing substitutability among products.
Subjects: 
Gravity
Product Variety
Trade Liberalisation
JEL: 
F12
F14
O33
Document Type: 
Working Paper

Files in This Item:
File
Size
329.12 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.