Bilateral Trade Flows and Income-Distribution Similarity
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Títol
Bilateral Trade Flows and Income-Distribution SimilarityData de publicació
2016-05-03Editor
Public Library of ScienceISSN
1932-6203Cita bibliogràfica
MARTÍNEZ-ZARZOSO, Inmaculada; VOLLMER, Sebastian. Bilateral Trade Flows and Income Distribution Similarity. PloS one, 2016, vol. 11, no 5, p. e0128191Tipus de document
info:eu-repo/semantics/articleVersió de l'editorial
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0128191Versió
info:eu-repo/semantics/publishedVersionParaules clau / Matèries
Resum
Current models of bilateral trade neglect the effects of income distribution. This paper
addresses the issue by accounting for non-homothetic consumer preferences and hence
investigating the role of income distribution ... [+]
Current models of bilateral trade neglect the effects of income distribution. This paper
addresses the issue by accounting for non-homothetic consumer preferences and hence
investigating the role of income distribution in the context of the gravity model of trade. A
theoretically justified gravity model is estimated for disaggregated trade data (Dollar volume
is used as dependent variable) using a sample of 104 exporters and 108 importers for
1980–2003 to achieve two main goals. We define and calculate new measures of income
distribution similarity and empirically confirm that greater similarity of income distribution
between countries implies more trade. Using distribution-based measures as a proxy for
demand similarities in gravity models, we find consistent and robust support for the hypothesis
that countries with more similar income-distributions trade more with each other. The
hypothesis is also confirmed at disaggregated level for differentiated product categories. [-]
Publicat a
PloS one, 2016, vol. 11, no 5Drets d'accés
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
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