The growth of world trade : tariffs , transport costs , and income similarity *

  title={The growth of world trade : tariffs , transport costs , and income similarity *},
  author={Baier and Bergstrand},
  • Baier, Bergstrand
  • Published 1997
In the 25th anniversary issue of the Brookings Papers on Economic Activity, Paul Krugman [Krugman, P., 1995. Growing world trade: Causes and consequences. Brookings Papers on Economic Activity (1), 327–377] stated that the answer to the fundamental question ‘‘Why has world trade grown?’’ remains surprisingly disputed. He noted that journalistic discussion tends to view the growth of world trade as due to technology-led declines in transportation costs, while economists argue that policy-led… CONTINUE READING
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