Trade Costs, 1870-2000

  title={Trade Costs, 1870-2000},
  author={David S. Jacks and Christopher M. Meissner and Dennis Novy},
  journal={The American Economic Review},
What has driven trade booms and trade busts in the past century and a half? Was it changes in global output or in the costs of international trade? To address this question, we derive a micro-founded measure of aggregate bilateral trade costs based on a standard model of trade in differentiated goods. These trade costs gauge the difference between observed bilateral trade and frictionless trade in terms of an implied markup on retail prices of foreign goods. Thus, we are able to estimate the… 

Figures and Tables from this paper

Trade Booms, Trade Busts, and Trade Costs

Back to the Future: International Trade Costs and the Two Globalizations

This article provides an assessment of the nineteenth century trade globalization based on a systematic collection of bilateral trade statistics. Drawing on a new data set of more than 1.9 million

Determinants of Trade Costs and Trade Growth Accounting between India and the European Union During 1995–2010

This study aimed to utilise the micro‐founded measure of trade cost derived by Novy to estimate the relative bilateral trade costs of India with its European Union partners. The advantage of using

Using observable trade data to measure bilateral trade costs in sub-Saharan Africa

Following closely the analytical approach adopted by Head and Mayer (2004) and Novy (2010), this paper derives a micro-founded bilateral trade cost measure for sub-Saharan Africa (SSA) as a function

12 / 06 Using Observable Trade Data to Measure Bilateral Trade Costs in Sub-Saharan Africa by Festus

Following closely the analytical approach adopted by Head and Mayer (2004) and Novy (2010), this paper derives a micro-founded bilateral trade cost measure for sub-Saharan Africa (SSA) as a function

Commodity Prices over Two Centuries: Trends, Volatility, and Impact

Does trade raise growth rates of commodity exporters less than those of industrial goods exporters? Do industrial countries gain more from trade? Do world trade booms over the past two centuries help

Trade, Transport Costs and Trade Imbalances: An Empirical Examination of International Markets and Backhauls

In this paper, we develop and estimate a model of international trade and transportation. The model consists of two regions that trade with one another creating demands for transport in each

The contribution of trade policy to the openness of the Dutch economy

The last four decades, Dutch exports and imports grew annually about 7.5%, while re-exports rocketed in the last two decades. Using a gravity approach this paper finds that the increase in trade is

Evolution of Trade Costs

The aim of this paper is to provide a detailed investigation of trade barriers by examining a cross-country, cross-industry analysis of evolution of trade costs for a 44-year period (1963-2006)



Trade Booms, Trade Busts, and Trade Costs

Transportation Costs and International Trade in the Second Era of Globalization

While the precise causes of postwar trade growth are not well understood, declines in transport costs top the lists of usual suspects. However, there is remarkably little systematic evidence

Regionalization, Changes in Home Bias, and the Growth of World Trade

In this paper we use numerical modeling methods to quantitatively assess the impacts of changes in home bias within regions on the growth of world trade among major blocs over the last three decades.

Globalization and the Great Divergence: Terms of Trade Booms and Volatility in the Poor Periphery 1782-1913

W. Arthur Lewis argued that a new international economic order emerged between 1870 and 1913, and that global terms of trade forces produced rising primary product specialization and

Trade Costs

This paper surveys the measurement of trade costs --- what we know, and what we don't know but may usefully attempt to find out. Partial and incomplete data on direct measures of costs go together

The GATT in Historical Perspective

The transformation of the General Agreement on Tariffs and Trade (GATT) into the World Trade Organization (WTO) on January 1, 1995, provides an opportune moment to take stock of the GATT's

The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?

The central claim in this paper is that by explicitly introducing costs of international trade (narrowly, transport costs, but more broadly, tariffs, nontariff barriers, and other trade costs), one