NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trade Theory with Numbers: Quantifying the Consequences of Globalization

Arnaud Costinot, Andrés Rodríguez-Clare

NBER Working Paper No. 18896
Issued in March 2013
NBER Program(s):   ITI

We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying theme of our survey is methodological. We rely on gravity models and demonstrate how they can be used for counterfactual analysis. We highlight how various economic considerations--market structure, firm-level heterogeneity, multiple sectors, intermediate goods, and multiple factors of production--affect the magnitude of the gains from trade liberalization. We conclude by discussing a number of outstanding issues in the literature as well as alternative approaches for quantifying the consequences of globalization.

download in pdf format
   (570 K)

email paper

This paper was revised on July 1, 2013

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18896

Published: Handbook of International Economics Volume 4, 2014, Pages 197–261 Handbook of International Economics Cover image Chapter 4 – Trade Theory with Numbers: Quantifying the Consequences of Globalization * Arnaud Costinota, b, Andrés Rodríguez-Clareb, c

Users who downloaded this paper also downloaded* these:
Melitz and Redding w18919 New Trade Models, New Welfare Implications
Arkolakis, Ramondo, Rodríguez-Clare, and Yeaple w18972 Innovation and Production in the Global Economy
Baldwin and Lopez-Gonzalez w18957 Supply-Chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses
Chan and Manova w18867 Financial Development and the Choice of Trade Partners
Arkolakis, Costinot, and Rodríguez-Clare w15628 New Trade Models, Same Old Gains?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us