Advertisement

Trade Growth Accounting in Goods and Services: An Empirical Exercise

  • Somesh K. Mathur
  • Sarbjit Singh
  • Gaurav Doshi
  • Abhishek Srivastava
Chapter

Abstract

This chapter explores the reasons behind trade growth in goods and services over the years for some selected countries by using Novy’s measure. We calculate trade costs in terms of tariff equivalents by using the indirect trade cost measure given by Novy. Trade costs and trade growth accounting in both goods and services are shown separately. For trade costs in goods, we look at the case of India and APEC countries, and for trade costs in services we consider the 61 trading partners for which data is available.

References

  1. Anderson, E. J., & Wincoop, V. E. (2003). Gravity with gravitas: A solution to the border puzzle. The American Economic Review, 93, 170–192.CrossRefGoogle Scholar
  2. Baier, S. L., & Bergstrand, J. H. (2001). The growth of world trade: Tariffs, transport costs, and income similarity. Journal of International Economics, 53(1), 1–27.CrossRefGoogle Scholar
  3. Chaney, T. (2008). Distorted gravity: The intensive and extensive margins of international trade. The American Economic Review, 98(4), 1707–1721.CrossRefGoogle Scholar
  4. Eaton, J., & Kortum, S. (2002). Technology, geography, and trade. Econometrica, 70(5), 1741–1779.CrossRefGoogle Scholar
  5. Francois J., & Pindyuk O. (2013). Consolidated data on international trade in services v8.7. IIDE discussion paper no. 20130101. Retrieved from www. I4ide.org/content/wpaper/dp20130101.
  6. Melitz, M. J., & Ottaviano, G. I. (2008). Market size, trade, and productivity. Review of Economic Studies, 75, 295–316.CrossRefGoogle Scholar
  7. Miroudot, S., Sauvage, J., & Shepherd, B. (2010). Measuring the cost of international trade in services (MPRA paper 27655). University Library of Munich, Germany.Google Scholar
  8. Novy, D. (2013). Gravity redux: Measuring international trade costs with panel data. Economic Enquiry, 51(1), 101–121.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Somesh K. Mathur
    • 1
  • Sarbjit Singh
    • 2
  • Gaurav Doshi
    • 1
  • Abhishek Srivastava
    • 1
  1. 1.Indian Institute of Technology KanpurKanpurIndia
  2. 2.Consumer Unity & Trust Society (CUTS) InternationalJaipurIndia

Personalised recommendations