School of Economics & Trade,
Guangdong University of Foreign Studies
No.2 Baiyun Avenue North
Baiyun District, Guangzhou Guangdong, PRC
Institutional Affiliation: School of Economics & Trade, Guangdong University of Foreign Studies
NBER Working Papers and Publications
|June 2017||General Equilibrium Trade Modelling with Canada-US Transportation Costs|
with , : w23500
Transportation costs are an important topic in international trade, but seldom have researches paid attention to general equilibrium trade modelling with transportation costs and explored their relevant effects. This paper uses different numerical general equilibrium trade model structures to simulate the impacts of transportation costs on both welfare and trade for a Canada-US country pair case. We compare two groups of model structure, Armington assumption models and homogeneous goods models. Within these two groups of models, we also compare balanced trade structures to trade imbalance structures, and production function transportation costs to iceberg transportation costs. Armington goods models generate absolute welfare gains from transportation cost elimination than homogeneous goods...
Published: Chuantian He & Chunding Li & John Whalley, 2018. "General equilibrium trade modelling with Canada–US transportation costs," The Journal of International Trade & Economic Development, vol 27(7), pages 806-829.