Heterogeneous Trade Costs of Trade Barriers

Economists have argued that rich and poor countries face asymmetric trade costs. In this short note, we propose a simple trade cost function to model trade cost asymmetry at the trade barrier level. Our trade cost function can better fit the data and shed light on the nature of some important parameters that have been used in applications on cross-country productivity and income differences.

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Work Title Heterogeneous Trade Costs of Trade Barriers
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Open Access
Creators
  1. Xuebing Yang
License In Copyright (Rights Reserved)
Work Type Article
Publication Date November 22, 2021
Deposited November 22, 2021

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