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• W1518077549 abstract "In this paper, we establish the importance of exper ience in international trade for reducing trade costs and facilitating bilateral tra de. Within an augmented gravity framework, we find that a 1% increase in experience at the country-pair level reduces trade costs by 0.2% and increases bilateral exports by 0.9%. We also find that experience raises the extensive margin of trade and that it spills across 4-digit sectors. Our findings help address the puzzle that despite f alling trade costs, most of the rapid growth of world trade is due to the growth of the t rade among countries that traded with each other prior to 1950 rather than due to the exp ansion of trade among new trade partners. We also build a trade model with heteroge neous firms where exportexperience reduces trade costs, introducing heterog eneity in firm entry decisions for export markets and dynamics for the extensive and i ntensive margins." @default.
• W1518077549 created "2016-06-24" @default.
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• W1518077549 date "2014-01-01" @default.
• W1518077549 modified "2023-09-24" @default.
• W1518077549 title "The Gravity of Experience" @default.
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• W1518077549 doi "https://doi.org/10.20955/wp.2014.041" @default.
• W1518077549 hasPublicationYear "2014" @default.
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