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- W2184900992 abstract "This paper develops a multi-sector version of the trade model proposed by Eaton and Kortum (2002) to investigate the role of heterogeneities in productivities in determining trade patterns across dierent manufacturing sectors. The model allows for dierent dispersions of industry e¢ ciencies within each sector; the latter are estimated, sector by sector, by regressing an equation for bilateral market shares, where standard gravity variables are used to model transport costs. The estimates show that sectors dier signi…cantly in the degree of heterogeneity of e¢ ciencies. As a by-product, they provide a sector-speci…c measure of trade costs, which are used to compute the trade-revealed average productivities for a sample of 20 countries and 13 manufacturing sectors. Finally, this paper quantify the gains from trade in terms of labor productivity, assessing the relative importance of the reallocations of production within each sector and that between sectors. Gains are largely due to the …rst kind of reallocations, especially for richer countries; for developing countries, reallocation between sectors, that is the change in the sectoral composition of their economy, is somewhat more important." @default.
- W2184900992 created "2016-06-24" @default.
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- W2184900992 date "2013-01-01" @default.
- W2184900992 modified "2023-09-26" @default.
- W2184900992 title "Trade across Countries and Sectors in a Ricardian World" @default.
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