A Decomposition of North American Trade Growth since NAFTA

Hillberry, Russell; McDaniel, Christine A.

doi:10.2139/ssrn.366320

Cited by 31 publications

(26 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For the effect of specific EIAs, Hillberry and McDaniel (2003) focus on the NAFTA, and Bensassi et al (2012) focus on the effects of the Barcelona Process on North African countries. Kehoe and Ruhl (2013) focus on the importance of the EM on the growth in trade not only among jei Economic Integration Effects on Trade Margins: Sectoral Evidence from Latin America…”

Section: Measuring Trade Marginsmentioning

confidence: 99%

Economic Integration Effects on Trade Margins : Sectoral Evidence from Latin America

Márquez‐Ramos

Florensa

Recalde

2015

JEI

View full text Add to dashboard Cite

The present paper aims to determine the effects of different levels of economic integration on the intensive and the extensive margins of trade. Specifically, the analysis focuses on the case of Latin America. It is of great importance for development policies in the region since the extensive margin can be defined as those exports that provide new market entrants, while the intensive margin is due to continued growth in sales of old exporters to the same destinations. Therefore, obtained results have important policy implications related to diversification strategies. The long-term period considered will allow us to determine whether different effects on trade margins might arise in the following two sub-periods: 1962~1989 and from 1990 onwards, i.e. before and after the spread of regional integration agreements and the deepening of the liberalization process

show abstract

Section: Measuring Trade Marginsmentioning

confidence: 99%

Economic Integration Effects on Trade Margins : Sectoral Evidence from Latin America

Márquez‐Ramos

Florensa

Recalde

2015

JEI

View full text Add to dashboard Cite

show abstract

“…Our study, particularly the decompositions in section 3.1, is the time-series analogue of their cross-sectional measurements. Hillberry and McDaniel (2002) use the Hummels-Klenow decomposition to study the growth in trade between the United States and its NAFTA partners. They find growth in both the intensive and extensive margins.…”

Section: Introductionmentioning

confidence: 99%

How Important Is the New Goods Margin in International Trade?

Kehoe

Ruhl

2013

Journal of Political Economy

229

230

View full text Add to dashboard Cite

ABSTRACT_____________________________________________________________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.

show abstract

“…Adjusting for the increase in total trade, the external margin accounted for roughly 25 percent of the increased trade between Mexico and the United States, 40 percent of increased Mexican exports to Canada, and almost 100 percent of increased Canadian exports to Mexico. Hillberry and McDaniel (2002), using an alternative measure, find evidence of smaller, but still significant, extensive margin growth for the United States following the implementation of NAFTA. Using the methodology of Hummels and Klenow (2005), they define a country's extensive margin as its share of world exports that occur in those product categories (measured HTS lines at the 10-digit level) in which a country exports.…”

Section: Bmentioning

confidence: 98%

Tradability, Productivity, and Understanding International Economic Integration

Bergin

Glick

2005

View full text Add to dashboard Cite

This paper develops a two-country macro model with endogenous tradability to study features of international economic integration. Recent episodes of integration in Europe and North America suggest some surprising observations: while quantities of trade have increased significantly, especially along the extensive margin, price dispersion has not decreased and may even have increased. We propose a way of reconciling these price and quantity observations in a macroeconomic model where the decision of heterogeneous firms to trade internationally is endogenous. Trade is shaped both by the nature of heterogeneity --trade costs versus productivity --and by the nature of trade policies --cuts in fixed costs versus cuts in per unit costs like tariffs. For example, in contrast to tariff cuts, trade policies that work mainly by lowering various fixed costs of trade may have large effects on entry decisions at the extensive margin without having direct effects on price-setting decisions. Whether this entry raises or lowers overall price dispersion depends on the type of heterogeneity that distinguishes the new entrants from incumbent traders.

show abstract

A Decomposition of North American Trade Growth since NAFTA

Cited by 31 publications

References 5 publications

Economic Integration Effects on Trade Margins : Sectoral Evidence from Latin America

Economic Integration Effects on Trade Margins : Sectoral Evidence from Latin America

How Important Is the New Goods Margin in International Trade?

Tradability, Productivity, and Understanding International Economic Integration

Contact Info

Product

Resources

About