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Explaining disaggregated trade data with Ricardian trade model

Authors: Korkmaz, Halil İbrahim;

Explaining disaggregated trade data with Ricardian trade model

Abstract

The aim of this thesis is to explain how disaggregated-product level tradedata fits into Eaton and Kortum (2002) type Ricardian trade model. In theirpaper, Eaton and Kortum (2002) explain the effect of geographical barriers andtechnological differences on trade between countries using data at aggregate level.Their model with perfect competition and constant marginal costs actually impliesthat the countries who have the lowest cost in supplying a particular goodto a particular destination should capture the entire demand for that good in thatdestination. However, this is not what is observed in disaggregated bilateral tradedata even in the least aggregated level. In this thesis, we propose alternative explanationssuch as capacity constraints and increasing marginal costs to reconcileEaton and Kortum (2002) setup with disaggregated bilateral trade data. Ouraim is to investigate why one seller is not able to win the entire market. Theresults suggest that costs are not increasing with trade quantities thus constantmarginal costs is still possible. To explain multiple sellers for each good and thefact that each exporter sells at a different unit price. It could be the case thatexporters are bounded by capacity constraints for each good in a given market.We report relative productivities of exporters at each destination where we reportto a destination with a low trade cost even low productive firms can compete butfor destinations with a high trade costs only most productive firms export.Keywords: Ricardian trade model, bilateral trade, total factor productivity, increasing marginal costs.

Bu tezin amacı, indirgenmiş ürün seviyesindeki ticaret verisinin Eaton and Kortum(2002) tipi Ricardo ticaret modeline ne kadar uyduğunu açıklayabilmektir.Eaton and Kortum (2002), coğrafi bariyerlerin ve teknolojik farklılıkların ülkelerarasındaki ticarete olan etkisini toplulaştırılmış ticaret verisi ile açıklıyor. Onlarınmodeli aslında bir üründe en düşükk maliyete sahip ülkenin o ürün için tüm piyasayahakim olması gerektiğini, en düşük maliyet ile tek satıcı durumunda olacağını işaretediyor. Ancak bu çıkarım bizim indirgenmiş ticaret verisinde gözlemlediğimizbir durum değildir, aksine bir ürünü aynı piyasada farklı fiyattan satan birdenfazla ihracatçı mevcuttur. Bu tezde biz söz konusu duruma indirgenmiş ikiliticaret verisi ve Eaton-Kortum (2002) modeli ile bağdaştırıcı alternatif bir açıklamagetiriyoruz. Bu açıklamalar ise ülkelerin dolayısıyla firmaların artan marjinalmaliyetlere veya kapasite kısıtlarına sahip olmasıdır. Böylece bir satıcının nedentüm piyasaya hakim olamadığını göstermeye çalışıyoruz. Bulgularımıza göreülkelerin ihraç ettikleri miktara kadar artan bir maliyete sahip olmadıklarını,ve sattıkları malın fiyatının miktardan bağımsız olduğunu gözlemledik. Bu sonuçtanyola çıkarak firmaların sabit marjinal maliyetlere sahip olduğunu ancak kapasitekısıtlaması ile sınırlandırılmış olduklarını söyleyebiliriz. Bu kısıtları ise aynıpiyasayadaki farklı birim fiyattan farklı miktarda ithal edilmiş ürünleri gözlemleyerekortaya çıkarabiliyoruz.Anahtar kelimeler : Ricardo ticaret modeli, ikili ticaret, toplam fakt¨or verimlili˘gi,artan marjinal maliyetler.

61

Country
Turkey
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Keywords

Data, Economics, Ricardian trade model, total factor productivity, 381, International trade, Total factor productivity, B151233, Ricardian equivalence, Pairs trading, Trade, increasing marginal costs, Ekonomi, bilateral trade

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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