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Drivers of Global Trade: A Product-Level Investigation

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  • Hakan Yilmazkuday

    (Department of Economics, Florida International University)

Abstract

This paper investigates the drivers of global trade at the six-digit product level. The identification is achieved first by estimating the log-linear product-level bilateral trade implications of a model and second by aggregating the fitted estimation results across bilateral countries using Taylor series to obtain global measures in levels for each product. The empirical results suggest that supply-side effects (capturing production or exporting costs in source countries) contribute to changes in global trade more than six times the demand-side effects (capturing economic activity or preferences in destination countries) and more than ten times the effects of bilateral trade costs (capturing bilateral protectionism measures). Several product-level implications follow.

Suggested Citation

  • Hakan Yilmazkuday, 2021. "Drivers of Global Trade: A Product-Level Investigation," Working Papers 2121, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:2121
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    File URL: https://economics.fiu.edu/research/pdfs/2021_working_papers/21211.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mohd Hussain Kunroo & Imran Ahmad, 2023. "Heckscher-Ohlin Theory or the Modern Trade Theory: How the Overall Trade Characterizes at the Global Level?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(1), pages 151-174, March.

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    More about this item

    Keywords

    Global Trade; Product-Level Analysis; Decomposition;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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    This paper has been announced in the following NEP Reports:

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