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Value-added share and elasticity of trade to barriers

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  • Xuebing Yang

Abstract

Trade flows, either measured as gross trade or flows of value-added, tend to be less sensitive to trade barriers in industries that feature a greater share of value-added in its product. Gross trade is, in general, more sensitive to trade barriers than the trade in value-added does. The differences between the elasticities of gross trade and value-added trade with respect to distance tend to be smaller for industries with a higher share of value-added in its product.

Suggested Citation

  • Xuebing Yang, 2022. "Value-added share and elasticity of trade to barriers," Applied Economics Letters, Taylor & Francis Journals, vol. 29(17), pages 1599-1604, October.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:17:p:1599-1604
    DOI: 10.1080/13504851.2021.1948960
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    Cited by:

    1. Inga Heiland & Patrik Šváb, 2024. "Estimating Gravity Equations for Trade in Value Added: A Structural Perspective," CESifo Working Paper Series 11480, CESifo.

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