IDEAS home Printed from https://ideas.repec.org/a/kap/openec/v28y2017i4d10.1007_s11079-017-9442-3.html
   My bibliography  Save this article

EU Enlargement and the New Goods Margin in Austrian Trade: Comment

Author

Listed:
  • Ignacio Rosal

    (University of Oviedo)

Abstract

This paper comments on the article ‘EU Enlargement and the New Goods Margin in Austrian Trade’ by John T. Dalton (Open Econ Rev 28(1):61–78, 2017). Dalton measures the new goods margin of trade between Austria and the new entrants to the EU in 2004, following the methodology proposed by Timothy Kehoe and Kim Ruhl (J Polit Econ 121(2):358–392, 2013). The present paper argues that the author overlooked the implicit requirement of using a consistent product classification, leading to overestimation of the new goods margin. After replicating Dalton’s results and recalculating the trade share of the new goods margin using a consistent product classification, this paper shows the magnitude of the overestimation (up to 20 or 30 decimal points of the trade share).

Suggested Citation

  • Ignacio Rosal, 2017. "EU Enlargement and the New Goods Margin in Austrian Trade: Comment," Open Economies Review, Springer, vol. 28(4), pages 795-803, September.
    • Handle: RePEc:kap:openec:v:28:y:2017:i:4:d:10.1007_s11079-017-9442-3
    DOI: 10.1007/s11079-017-9442-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11079-017-9442-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11079-017-9442-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ilke Van Beveren & Andrew B. Bernard & Hylke Vandenbussche, 2012. "Concording of EU trade and production data over time," Working Paper Research 239, National Bank of Belgium.
    2. Justin Pierce & Peter Schott, 2009. "Concording U.S. Harmonized System Categories Over Time," Working Papers 09-11, Center for Economic Studies, U.S. Census Bureau.
    3. Timothy J. Kehoe & Kim J. Ruhl, 2013. "How Important Is the New Goods Margin in International Trade?," Journal of Political Economy, University of Chicago Press, vol. 121(2), pages 358-392.
    4. John T. Dalton, 2017. "EU Enlargement and the New Goods Margin in Austrian Trade: Reply," Open Economies Review, Springer, vol. 28(4), pages 805-808, September.
    5. John T. Dalton, 2017. "EU Enlargement and the New Goods Margin in Austrian Trade," Open Economies Review, Springer, vol. 28(1), pages 61-78, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sang-wook (Stanley) Cho & Hansoo Choi & Julián P. Díaz, 2018. "Do Free Trade Agreements Increase the New Goods Margin? Evidence from Korea," Open Economies Review, Springer, vol. 29(5), pages 1095-1122, November.
    2. Imad Kareem Alaamshani & Hanny Zurina Hamzah & Shivee Ranjanee Kaliappan & Normaz Wana Ismail, 2021. "Impact of Trade Facilitation on Extensive Margin," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 131-147.
    3. Sang‐Wook (Stanley) Cho & Hansoo Choi & Julián P. Díaz, 2022. "The causal effect of free trade agreements on the trade margins: Product‐level evidence from geographically distant partners," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1453-1489, April.
    4. Erbahar, Aksel & Rebeyrol, Vincent, 2023. "Trade intermediation by producers," Journal of International Economics, Elsevier, vol. 140(C).
    5. Aksel Erbahar, 2020. "Two worlds apart? Export demand shocks and domestic sales," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 313-342, May.
    6. Scott French, 2014. "Innovation, Product-Cycle Trade, and the Cross-Country Distribution of Income," Discussion Papers 2014-26, School of Economics, The University of New South Wales.
    7. Wagner, Rodrigo & Zahler, Andrés, 2015. "New exports from emerging markets: Do followers benefit from pioneers?," Journal of Development Economics, Elsevier, vol. 114(C), pages 203-223.
    8. Linda Andersson & Patrik Karpaty & Selen Savsin, 2016. "Firm-level effects of offshoring of materials and services on relative labor demand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 321-350, May.
    9. Luca David Opromolla & Rúben Branco, 2012. "Product switching or re-classification? An application to portuguese international trade," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    10. Dalton, John T., 2014. "The new goods margin in Japanese–Chinese trade," Japan and the World Economy, Elsevier, vol. 31(C), pages 8-13.
    11. Handley, Kyle, 2014. "Exporting under trade policy uncertainty: Theory and evidence," Journal of International Economics, Elsevier, vol. 94(1), pages 50-66.
    12. Benjamin Gampfer & Ingo Geishecker, 2019. "Chinese competition: intra-industry and intra-firm adaptation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(2), pages 327-352, May.
    13. Linda Andersson & Patrik Karpaty & Selen Savsin, 2017. "Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm-level Data," The World Economy, Wiley Blackwell, vol. 40(2), pages 240-274, February.
    14. Ingo Geishecker & Philipp J. H. Schröder & Allan S⊘rensen, 2019. "One‐off export events," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 93-131, February.
    15. Mau, Karsten, 2014. "Margins, Gravity, and Causality: Export Diversification and Income Levels Reconsidered," GIGA Working Papers 249, GIGA German Institute of Global and Area Studies.
    16. Spearot, Alan C., 2013. "Variable demand elasticities and tariff liberalization," Journal of International Economics, Elsevier, vol. 89(1), pages 26-41.
    17. Debaere, Peter & Mostashari, Shalah, 2010. "Do tariffs matter for the extensive margin of international trade? An empirical analysis," Journal of International Economics, Elsevier, vol. 81(2), pages 163-169, July.
    18. Karsten Mau, 2016. "Export diversification and income differences reconsidered: The extensive product margin in theory and application," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 351-381, May.
    19. José Bardaji & Jean‐Charles Bricongne & Benoît Campagne & Guillaume Gaulier, 2019. "Domestic and export performances of French firms," The World Economy, Wiley Blackwell, vol. 42(3), pages 785-817, March.
    20. Mina Kim & Deokwoo Nam & Jian Wang & Jason J. Wu, 2013. "International trade price stickiness and exchange rate pass-through in micro data: a case study on U.S.–China trade," Globalization Institute Working Papers 135, Federal Reserve Bank of Dallas.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:28:y:2017:i:4:d:10.1007_s11079-017-9442-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.