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The Changing Incidence of Geography / James E. Anderson, Yoto V. Yotov.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Anderson, James E.
Contributor:
National Bureau of Economic Research.
Yotov, Yoto V.
Series:
Working Paper Series (National Bureau of Economic Research) no. w14423.
NBER working paper series no. w14423
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2008.
Summary:
The incidence of bilateral trade costs is calculated here using neglected properties of the structural gravity model, disaggregated by commodity and region, and re-aggregated into forms useful for economic geography. For Canada's provinces, 1992- 2003, incidence is on average some five times higher for sellers than for buyers. Sellers' incidence falls over time due to specialization, despite constant gravity coefficients. This previously unrecognized globalizing force drives big reductions in 'constructed home bias', the disproportionate predicted share of local trade; and large but varying gains in real GDP.
Notes:
Print version record
October 2008.

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