Asia's Melting Trade Costs
Brooks, Douglas H.; Ferrarini, Benno | July 2011
Abstract
This study calculates the decline in costs involving merchandise trade between the People’s Republic of China (PRC) and India during the period 1980–2008. Drawing from the recent literature, a comprehensive measure of trade costs is derived from a theory-founded gravity model of international trade, which can be computed based on the observed bilateral trade flows and GDP data. The analysis reveals that trade costs have declined sharply since the 1980s, accounting for a large and increasing portion of growth in total trade between the two countries. Whereas the reduction in trade costs accounted for less than one-third of the increase in trade between PRC and India during the 1980s, lower costs seem to explain about three-quarters of trade expansion during the 1990s and up to nearly 85 per cent in 2001–08.
Citation
Brooks, Douglas H.; Ferrarini, Benno. 2011. Asia's Melting Trade Costs. © Wiley. http://hdl.handle.net/11540/4292.Keywords
Textile Industry
Rayon Industry
Cotton Industry
Clothing Industry
Trade
Merchandise Trade
Weaving
Textiles
Textile Workers
Wool Industry
Silk Industry
Small Scale Industry
Medium Scale Industry
Local Industry
Export Oriented Industries
Shoe Industry
Clothing
Hosiery Industry
Fur Industry
Leather Industry
Import volume
Export volume
Imports
Exports
Work clothes industry
Women's clothing industry
Children's clothing industry
Uniforms industry
Underwear industry
T-shirt industry
Sweater industry
Suspender industry
Sport clothes industry
Sleepwear industry
Shirt industry
Shawl industry
Men's clothing industry
Leather garments industry
Textile industry and fabrics
Fabrics
Cloth
Wool-growing industry
Garment industry
Apparel industry
Belt industry
Glove industry
Footwear industry
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