Gains from domestic versus international trade: Evidence from the US

2019/09/18 by Hakan Yilmazkuday · 1 voice · 1 citation
Economics, Econometrics and Finance · #Economic Growth and Productivity #Fiscal Policy and Economic Growth #Global trade and economics

paper · doi:10.1080/09638199.2019.1662075

openalex publication_date 2019/09/18 · openalex created_date 2025/10/10 · openalex updated_date 2025/11/06

Abstract

Using varieties of a rich model that considers sectoral heterogeneity and input-output linkages, this paper shows that the overall welfare gains of a region within a country can be decomposed into domestic versus international welfare gains from trade. Empirical results based on sector- and state-level data from the US suggest that about 94 percent of the overall welfare gains of a state is due to domestic trade with other states. The ocean states gain from international trade about two times the Great Lake states and about three times the landlocked states.

Cited by

• Diminishing gains from trade across countries: Interaction between trade elasticity and openness

Discussions

• US states derive the vast majority of their trade welfare gains domestically, while coastal proximity heavily dictates the comparatively smaller benefits gained from international markets. doi.org/10. [bsky, 1 points, 0 comments]

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