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Toward “Trade Policy Analysis 2.0”: From National Comparative Advantage to Firm-Level Trade Data

In: Production Networks and Enterprises in East Asia

Author

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  • Lucian Cernat

    (European Commission)

Abstract

This chapter makes the case for the need to “upgrade” current analytical tools used for trade policy analysis and complement them with more detailed firm-level data. Such an upgrade should be based on the latest intellectual advancements in trade theories and the latest firm-level trade statistics that are now becoming widely available. An upgraded “Trade Policy Analysis 2.0” could contribute to several trade policy priorities and to a better understanding of the benefits from international trade for firm competitiveness, job creation, and consumer welfare.

Suggested Citation

  • Lucian Cernat, 2016. "Toward “Trade Policy Analysis 2.0”: From National Comparative Advantage to Firm-Level Trade Data," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 21-31, Springer.
    • Handle: RePEc:spr:adbchp:978-4-431-55498-1_2
    DOI: 10.1007/978-4-431-55498-1_2
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    References listed on IDEAS

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    1. Thierry Mayer & Marc J. Melitz & Gianmarco I. P. Ottaviano, 2021. "Market Size, Competition, and the Product Mix of Exporters," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 5, pages 109-150, World Scientific Publishing Co. Pte. Ltd..
    2. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8m210prh is not listed on IDEAS
    3. Lucian, Cernat & Ana, Norman-López & Ana, Duch T-Figueras, 2014. "SMEs are more important than you think! Challenges and opportunities for EU exporting SMEs," DG TRADE Chief Economist Notes 2014-3, Directorate General for Trade, European Commission.
    4. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2007. "Comparative Advantage and Heterogeneous Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(1), pages 31-66.
    5. Kasahara, Hiroyuki & Lapham, Beverly, 2013. "Productivity and the decision to import and export: Theory and evidence," Journal of International Economics, Elsevier, vol. 89(2), pages 297-316.
    6. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    7. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    8. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8m210prh is not listed on IDEAS
    9. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
    10. Lakatos, C. & Fukui, T., 2013. "EU-US economic linkages: The role of multinationals and intra-firm trade," DG TRADE Chief Economist Notes 2013-3, Directorate General for Trade, European Commission.
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    Cited by:

    1. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    2. Marco Bee & Stefano Schiavo, 2018. "Powerless: gains from trade when firm productivity is not Pareto distributed," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 15-45, February.
    3. Ruben Dewitte & Bruno Merlevede & Glenn Rayp, 2024. "Gains from trade: Demand, supply, and idiosyncratic shocks," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(5), pages 870-886, August.
    4. Dewitte, Ruben, 2020. "From Heavy-Tailed Micro to Macro: on the characterization of firm-level heterogeneity and its aggregation properties," MPRA Paper 103170, University Library of Munich, Germany.

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    More about this item

    Keywords

    Trade policy; International trade organizations; Trade and labor market interactions; Trade forecasting and simulation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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