[PDF] Globalization And The Gains From Variety eBook

Author : Christian Broda
Publisher :
Page : 80 pages
File Size : 28,12 MB
Release : 2004
Category : Economics
ISBN :

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"Since the seminal work of Krugman (1979), product variety has played a central role in models of trade and growth. In spite of the general use of love-of-variety models, there has been no systematic study of how the import of new varieties has contributed to national welfare gains in the United States. In this paper we show that the unmeasured growth in product variety from US imports has been an important source of gains from trade over the last three decades (1972-2001). Using extremely disaggregated data, we show that the number of imported product varieties has increased by a factor of four. We also estimate the elasticities of substitution for each available category at the same level of aggregation, and describe their behavior across time and SITC-5 industries. Using these estimates we develop an exact price index and find that the upward bias in the conventional import price index is approximately 1.2 percent per year. The magnitude of this bias suggests that the welfare gains from variety growth in imports alone are 2.8 percent of GDP"--NBER website

Author : Lukas Mohler
Publisher :
Page : 30 pages
File Size : 22,61 MB
Release : 2009
Category :
ISBN :

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Since the pioneering work of Krugman (1980) economists try to quantify thewelfare gains from an increase in traded variety. The seminal work of Feenstra(1994) and its application to the U.S. of Broda and Weinstein (2006) allowed thisquantification for the first time using highly disaggregated trade data. In thispaper it is argued that size and openness of a country are important factors indetermining these welfare gains. The gains from traded variety of a small openeconomy are calculated and compared to those of the U.S.; the differencesbetween the countries are then analysed carefully. To achieve this, themethodology of Feenstra (1994) is extended. While the Armington definition of avariety forces the researcher to assume no growth at the extensive margin, in thispaper the Feenstra ratios are reinterpreted in a way that allows for full growth atthe extensive margin. The resulting two polar cases will influence the countrycomparison with respect to the gains from variety: Depending on how muchgrowth at the extensive margin a researcher is willing to assume, the relative gainsfrom variety of a small open economy compared to a larger economy like theU.S. are changed. It is also argued that this result may hold generally for othersmall and large OECD economies.

Author : Christian M. Broda
Publisher :
Page : 0 pages
File Size : 39,46 MB
Release : 2014
Category :
ISBN :

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Over the last three decades, trade has more than tripled the variety of international goods available to U.S. consumers. Although an increased choice of goods clearly enhances consumer well-being, standard national measures of welfare and prices do not assign a value to variety growth. This analysis - the first effort to measure such gains - finds that the value to consumers of global variety growth in the 1972-2001 period was roughly $260 billion.

Author : Robert C. Feenstra
Publisher :
Page : 0 pages
File Size : 11,48 MB
Release : 2010
Category : Commercial products
ISBN : 9780262062800

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"This book is a brilliant exploration of the implications of recent theories of international trade for one of the most important questions in the field: how large are the gains from trade? Feenstra takes the models apart to shed light on the basic mechanisms at play and then masterfully uses the data to understand their quantitative significance."--AndrTs Rodriquez-Clare, Professor of Economics, Pennsylvania State University -- Book Jacket.

Author : Robert M. Stern
Publisher : World Scientific
Page : 716 pages
File Size : 20,59 MB
Release : 2011
Category : Business & Economics
ISBN : 9814340375

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Alan Deardorff was 65 years old on June 6, 2009. To celebrate this occasion, a Festschrift in his honor was held on October 2OCo3, 2009, in the Rackham Amphitheater at the University of Michigan in Ann Arbor. The Festschrift was entitled OC Comparative Advantage, Economic Growth, and the Gains from Trade and Globalization: A Festschrift in Honor of Alan V Deardorff.OCO It was co-organized by two of Professor Deardorff''s former students, Drusilla Brown of Tufts University and Robert Staiger of Stanford University, together with Robert Stern representing the University of Michigan. The first day of the Festschrift involved a series of panels in which invited participants reflected on Professor Deardorff''s contributions, including his writings on: comparative advantage; trade and growth; the gains from trade and globalization; and computational modeling and trade policy analysis. The panel participants prepared written comments, setting out their evaluation of Professor Deardorff''s contributions combined with their own thoughts on the current state of knowledge and analysis of the particular topic. At the end of the first day, Paul Krugman of Princeton University and The New York Times delivered a Citigroup Foundation Special Lecture entitled OC Reflections on Globalization: Yesteryear and Today.OCO All of these papers and Krugman''s lecture are contained in the volume."

Author : Robert C. Feenstra
Publisher : University of Chicago Press
Page : 603 pages
File Size : 23,61 MB
Release : 2010-03-10
Category : Business & Economics
ISBN : 0226239721

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In less than three decades, China has grown from playing a negligible role in international trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. Not surprisingly, China's economic dynamism has generated considerable attention and concern in the United States and beyond. While some analysts have warned of the potential pitfalls of China's rise—the loss of jobs, for example—others have highlighted the benefits of new market and investment opportunities for US firms. Bringing together an expert group of contributors, China's Growing Role in World Trade undertakes an empirical investigation of the effects of China's new status. The essays collected here provide detailed analyses of the microstructure of trade, the macroeconomic implications, sector-level issues, and foreign direct investment. This volume's careful examination of micro data in light of established economic theories clarifies a number of misconceptions, disproves some conventional wisdom, and documents data patterns that enhance our understanding of China's trade and what it may mean to the rest of the world.

Author : Joachim Von Braun
Publisher : Oxford University Press, USA
Page : 392 pages
File Size : 32,50 MB
Release : 2008
Category : Business & Economics
ISBN :

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The world agri-food system is getting increasingly 'globalized'. As the majority moves into cities, and those who remain in rural areas adopt urbanized lifestyles the consumption of food is changing toward varied yet similar consumption around the world. This book reflects on how these changes are affecting the poor by looking at specific factors that are driving change. The chapters consider different angles to the following questions: How do these changes affect the roles and powers of various actors along the food chain? How relevant are these trends to the economic developments within the global agri-food system, and in particular to the poor segments of society? How is the globalization of foods affecting human health? How can international and national policy address possible adverse direct and indirect effects of globalization of the world's agri-food system while strengthening positive ones? The book attempts to combine both lines of inquiry, focusing more specifically on the globalization of agri-food systems, the actual and potential impacts of these trends on the poor, and the implications for food and nutrition security in developing countries.

Author : Kristian Behrens
Publisher :
Page : 0 pages
File Size : 44,69 MB
Release : 2009
Category : International trade
ISBN :

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We analyze the impact of globalization on individual gains from trade in a general equilibrium model of monopolistic competition featuring product diversity, pro-competitive effects and income heterogeneity between and within countries. We show that, although trade reduces markups in both countries, its impact on variety depends on their relative position in the world income distribution: product diversity in the lower income country always expands, while that in the higher income country may shrink. When the latter occurs, the richer consumers in the higher income country may lose from trade because the relative importance of variety versus quantity increases with income. We illustrate this effect using data on GDP per capita and population for 186 countries, as well as parameter estimates for domestic income distributions. Our results suggest that U.S. trade with countries of similar GDP per capita makes all agents in both countries better off, whereas trade with countries having lower GDP per capita may adversely affect up to 11% of the U.S. population.

Author : Elhanan Helpman
Publisher : MIT Press
Page : 294 pages
File Size : 30,37 MB
Release : 1987-02-06
Category : Business & Economics
ISBN : 9780262580878

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Market Structure and Foreign Trade presents a coherent theory of trade in the presence of market structures other than perfect competition. The theory it develops explains trade patterns, especially of industrial countries, and provides an integration between trade and the role of multinational enterprises. Relating current theoretical work to the main body of trade theory, Helpman and Krugman review and restate known results and also offer entirely new material on contestable markets, oligopolies, welfare, and multinational corporations, and new insights on external economies, intermediate inputs, and trade composition.

Author : Dani Rodrik
Publisher : OUP Oxford
Page : 442 pages
File Size : 36,60 MB
Release : 2012-05-17
Category : Political Science
ISBN : 0191634255

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For a century, economists have driven forward the cause of globalization in financial institutions, labour markets, and trade. Yet there have been consistent warning signs that a global economy and free trade might not always be advantageous. Where are the pressure points? What could be done about them? Dani Rodrik examines the back-story from its seventeenth-century origins through the milestones of the gold standard, the Bretton Woods Agreement, and the Washington Consensus, to the present day. Although economic globalization has enabled unprecedented levels of prosperity in advanced countries and has been a boon to hundreds of millions of poor workers in China and elsewhere in Asia, it is a concept that rests on shaky pillars, he contends. Its long-term sustainability is not a given. The heart of Rodrik’s argument is a fundamental 'trilemma': that we cannot simultaneously pursue democracy, national self-determination, and economic globalization. Give too much power to governments, and you have protectionism. Give markets too much freedom, and you have an unstable world economy with little social and political support from those it is supposed to help. Rodrik argues for smart globalization, not maximum globalization.