Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232397 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8800
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
We propose a short-run model of the extensive margin of trade and deploy it to distinguish and quantify domestic and cross-border margins. Our empirical focus is on the domestic extensive margin of trade (domestic distribution of a product) and its importance for quantifying policy and globalization effects on the international extensive margin of trade. We build a dataset that combines data on the domestic extensive margin and the standard international extensive margin. It reveals significant and intuitive variation in the domestic extensive margin across countries and over time. We quantify the extensive margin effects of European Union (EU) integration, 2008-2018, and demonstrate that these effects cannot be identified without the domestic extensive margin. We find strong and highly heterogeneous effects, both across countries and directionally.
Subjects: 
extensive margin
domestic extensive margin
globalization
gravity
JEL: 
F13
F14
F16
Document Type: 
Working Paper
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