Trade Theory with Numbers: Quantifying the Consequences of Globalization

We review a recent body of theoretical work that aims to put numbers on the consequences of globalization. A unifying theme of our survey is methodological. We rely on gravity models and demonstrate how they can be used for counterfactual analysis. We highlight how various economic considerations--market structure, firm-level heterogeneity, multiple sectors, intermediate goods, and multiple factors of production--affect the magnitude of the gains from trade liberalization. We conclude by discussing a number of outstanding issues in the literature as well as alternative approaches for quantifying the consequences of globalization.

• Publication year

  2013

• Venue

  Handbook of International Economics

• Publication date

  2013-03-01

• Fields of study

  Economics

• Identifiers
  DOI 10.1016/B978-0-444-54314-1.00004-5
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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