TY - JOUR
T1 - How important is the new goods margin in international trade?
AU - Kehoe, Timothy J.
AU - Ruhl, Kim J.
PY - 2013/4
Y1 - 2013/4
N2 - We propose a methodology for studying changes in bilateral commodity trade due to goods not exported previously or exported only in small quantities. Using a panel of 1,900 country pairs, we find that increased trade of these "least-traded goods" is an important factor in trade growth. This extensive margin accounts for 10 percent of the growth in trade for NAFTA country pairs, for example, and 26 percent in trade between the United States and Chile, China, and Korea. Looking at country pairs with no major trade policy change or structural change, however, we find little change in the extensive margin.
AB - We propose a methodology for studying changes in bilateral commodity trade due to goods not exported previously or exported only in small quantities. Using a panel of 1,900 country pairs, we find that increased trade of these "least-traded goods" is an important factor in trade growth. This extensive margin accounts for 10 percent of the growth in trade for NAFTA country pairs, for example, and 26 percent in trade between the United States and Chile, China, and Korea. Looking at country pairs with no major trade policy change or structural change, however, we find little change in the extensive margin.
UR - http://www.scopus.com/inward/record.url?scp=84876591544&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84876591544&partnerID=8YFLogxK
U2 - 10.1086/670272
DO - 10.1086/670272
M3 - Article
AN - SCOPUS:84876591544
SN - 0022-3808
VL - 121
SP - 358
EP - 392
JO - Journal of Political Economy
JF - Journal of Political Economy
IS - 2
ER -