The importance of trade costs in deviations from the law-of-one-price: estimates based on the direction of trade
Yükleniyor...
Dosyalar
Tarih
2012-07
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Wiley-Blackwell
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The full impact of trade costs in segmenting product markets cannot be captured by considering aggregate prices or in the absence of information on the direction of trade. We address this problem by utilizing product-specific prices, cross-sectional productivity indices, and bilateral trade flows, allowing us to identify the probable source of any one product. We show that trade costs in the form of transportation and distribution costs are important in determining international price differences and segmenting international markets. Physical distance relative to the origin has a precisely estimated positive impact on international deviations from the Law-of-One-Price that is larger than estimates that do not account for the origin of each product. Based on our benchmark estimates, the price elasticity of distance was around 10% in 1990.
Açıklama
Anahtar Kelimeler
International-Trade, To-Market, Exchange rates, Purchasing power parity, Nominal exchange
Kaynak
Economic Inquiry
WoS Q Değeri
Q2
Scopus Q Değeri
Q1
Cilt
50
Sayı
3
Künye
İnanç Tunçer, Ö. & Zachariadis, M. (2012). The importance of trade costs in deviations from the law-of-one-price: Estimates based on the direction of trade. Economic Inquiry, 50(3), 667-689. doi:10.1111/j.1465-7295.2010.00339.x
