Unpacking Sources of Comparative Advantage: A Quantitative Approach

Chor, Davin

doi:10.2139/ssrn.1289543

Cited by 136 publications

(234 citation statements)

References 108 publications

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“…In this section we introduce differences in factor intensity across sectors, as in the extensions of Eaton and Kortum (2002), Bernard, Eaton, Jensen, and Kortum (2003), and Melitz (2003) considered by Chor (2010), Burstein and Vogel (2010), and Bernard, Redding, and Schott (2007), respectively.…”

Section: Multiple Factors Of Productionmentioning

confidence: 99%

Trade Theory with Numbers: Quantifying the Consequences of Globalization

Costinot

Rodrı́guez-Clare

2014

Handbook of International Economics

466

247

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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.

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Section: Multiple Factors Of Productionmentioning

confidence: 99%

Trade Theory with Numbers: Quantifying the Consequences of Globalization

Costinot

Rodrı́guez-Clare

2014

Handbook of International Economics

466

247

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“…Berkowitz et al (2006), Chor (2008) as well as Barattieri (2014) search for the sources of comparative advantages and demonstrate how transport cost, transaction cost or trade cost bias the results of the comparative advantage analyses. Moenius (2006) proves RSCA is an adequate measure of comparative advantage, although it does not have signifi cant predictive power.…”

Section: Methods and Aim Of The Researchmentioning

confidence: 99%

Competitiveness of the European Automobile Industry in the Global Context

Vošta¹,

Kocourek²

2017

Politics in Central Europe

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“…in country i. 10 Given its de…nition and its role in (2), throughout the paper I will refer to T ! it interchangeably as the stock of ideas or the level of manufacturing technology of country i in industry !.…”

Section: R;! Tmentioning

confidence: 99%

Comparative Advantage in Innovation and Production

Somale

2017

internationalfinance

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This paper develops a multi-country, general equilibrium, semi endogenous growth model of innovation and trade in which specialization in innovation and production are jointly determined. The distinctive element of the model is the ability of the agents to direct their research e¤orts to speci…c goods, in a context of heterogeneous innovation capabilities across countries and contemporaneous decreasing returns to R&D. The model features a two-way relationship between trade and technology absent in standard quantitative Ricardian trade models. I calibrate the model using a sample of 29 countries and 18 manufacturing industries and quantify the importance of endogenous adjustments in technology. I …nd that endogenous adjustments in technology due to directed research can account for up to 52.8% of the observed variance in comparative advantage in production. In addition, the model suggests that standard Ricardian models overestimate the reductions in real income from increases in trade costs and underestimate the increment in real income due to trade liberalizations.

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Unpacking Sources of Comparative Advantage: A Quantitative Approach

Cited by 136 publications

References 108 publications

Trade Theory with Numbers: Quantifying the Consequences of Globalization

Trade Theory with Numbers: Quantifying the Consequences of Globalization

Competitiveness of the European Automobile Industry in the Global Context

Comparative Advantage in Innovation and Production

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