Trade costs and the Home Market Effect

Journal of International Economics

Volumn 76, Issue 2, 2008, Pages 309-321

  Crozet, Matthieu ^a   Trionfetti, Federico ^b  

^a UNIVERSITÉ DE REIMS CHAMPAGNE ARDENNE   (France)

^b Centre National de la Recherche Scientifique   (France)

Author keywords

Economic geography; F1; Home Market Effect; International trade; R12; Test of trade theories

Indexed keywords

ECONOMIC GEOGRAPHY; ECONOMIC THEORY; EMPIRICAL ANALYSIS; INTERNATIONAL TRADE; NONLINEARITY; TRANSACTION COST; WAGE GAP;

EID: 56749133327     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2008.07.006     Document Type: Article

References (31)

1. Amiti M. Inter-industry trade in manufactures: does country size matter. Journal of International Economics 44 (1998) 231-255
2. Andrews D.W.K. Test for parameter instability and structural change with unknown change point. Econometrica 61 4 (1993) 821-856
3. Andrews D.W.K. Test for parameter instability and structural change with unknown change point: a corrigendum. Econometrica 71 1 (2003) 395-397
4. Armington P.S. A theory of demand for products distinguished by place of production. IMF Staff Papers 16 (1969) 159-176
5. Baier S.L., and Bergstrand J.H. The growth of world trade: tariffs, transport costs, and income similarity. Journal of International Economics 53 1 (2001) 1-27
6. Behrens, K., Lamorgese, A., Ottaviano, G.I.P., Tabuchi, T., 2004. Testing the 'Home Market Effect' in a Multi-Country World: a theory-based approach. CEPR Discussion Paper 4468.
7. Broda C., and Weinstein D.E. Globalization and the gains from variety. The Quarterly Journal of Economics 121 2 (2006) 541-585
8. Brülhart, M., Trionfetti, F., 2005. A test of trade theories when expenditure is home biased. CEPR discussion paper 5097.
9. Davis D.R. The home market, trade and industrial structure. American Economic Review 88 (1998) 1264-1276
10. Davis D.R., and Weinstein D.E. Economic geography and regional production structure: an empirical investigation. European Economic Review 43 (1999) 379-407
11. Davis D.R., and Weinstein D.E. Market access, economic geography and comparative advantage: an empirical test. Journal of International Economics 59 (2003) 1-23
12. Feenstra R.C., Markusen J.A., and Rose A.K. Using the gravity equation to differentiate among alternative theories of trade. Canadian Journal of Economics 34 (2001) 430-447
13. Feenstra, R.C., Romalis, J., Schott, P.K., 2002. U.S. Imports, Exports, and Tariff Data, 1989-2001. NBER Working Paper 9387.
14. Hanson H.G. Market potential, increasing returns, and geographic concentration. Journal of International Economics 67 (2005) 1-24
15. Hanson H.G., and Xiang C. The home market effect and bilateral trade patterns. American Economic Review 94 (2004) 1108-1129
16. Head K., and Mayer T. The empirics of agglomeration and trade. In: Henderson J.V., and Thisse J.-F. (Eds). Handbook of Urban and Regional Economics vol. 4 (2004), Amsterdam, North Holland 2609-2669
17. Head K., and Mayer T. Regional wages and employment responses to market potential in the EU. Regional Sciences and Urban Economics 36 5 (2006) 573-595
18. Head K., Mayer T., and Ries J. On the pervasiveness of the home market effects. Economica 69 (2002) 371-390
19. Head K., and Ries J. Increasing returns versus national product differentiation as an explanation for the pattern of US-Canada trade. American Economic Review 91 (2001) 858-876
20. Helpman E., and Krugman P. Market Structure and Foreign Trade (1985), MIT Press
21. Holmes T.J., and Stevens J.J. Does home market size matter for the pattern of trade?. Journal of International Economics 65 (2005) 489-505
22. Judd K. Numerical Methods in Economics (1998), MIT Press
23. Krugman P.R. Scale economies, product differentiation, and the pattern of trade. American Economic Review 70 (1980) 950-959
24. Laussel D., and Paul T. Trade and the location of industries: some new results. Journal of International Economics 71 (2007) 148-166
25. Lundbäck E., and Torstensson J. Demand comparative advantage and economic geography in international trade: evidence from the OECD. Weltwirtschaftliches Archiv 134 (1998) 230-249
26. Mayer, T., Zignago, S., 2005. Market access in global and regional trade. CEPII working Paper 2005-02.
27. Nicita A., and Olarreaga M. Trade, production and protection database, 1976-2004. World Bank Economic Review 21 (2007) 165-171
28. Trionfetti F. Using home-biased demand to test for trade theories. Weltwirtschaftliches Archiv 137 (2001) 404-426
29. Weder R. Linking absolute and comparative advantage to intra-industry trade theory. Review of International Economics 3 (1995) 342-354
30. Weder R. Comparative home-market advantage: an empirical analysis of British and American exports. Weltwirtschaftliches Archiv 139 (2003) 220-247
31. Yu Z. Trade, market size, and industrial structure: the home market effects revisited. Canadian Journal of Economics 38 1 (2005) 255-272