2021/09/29 by Hakan Yilmazkuday · 1 voice
Economics, Econometrics and Finance · Business, Management and Accounting · #Global trade and economics #Global Trade and Competitiveness #Economic Growth and Productivity
paper · doi:10.1080/10168737.2021.1983631
openalex publication_date 2021/09/29 · openalex created_date 2025/10/10 · openalex updated_date 2026/04/30
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.