variables – such as income, welfare, and trade flows – is quite low. As Arkolakis et al. (2012) have shown, for a large class of such models, the welfare gains from trade are a function of only the share of domestic goods in aggregate expenditure and the elasticity of bilateral trade flows with respect to variable trade costs, regardless of the underlying micro-level structure of the model. However, the restrictions of these models which make them so analytically tractable and conducive to quantitative analysis require the implicit assumption either that there is no trade arising from comparative advantage across products or that countries’ patterns of comparative advantage take a very special form, both of which imply that the effect of trade barriers on aggregate trade flows
is independent of the composition of those trade flows.
In this paper, I relax these restrictions, developing a model with the flexibility to allow for arbitrary patterns of comparative advantage across products for every country, while maintaining much of the analytical tractability of aggregate models. I show that these patterns of product-level comparative advantage can interact in non-trivial ways to influence the effects of trade barriers on aggregate bilateral trade flows and welfare. Using data on product-level bilateral trade flows, I find countries’ patterns of comparative...
... middle of paper ...
advantage products. In the case of the welfare gains from trade relative to autarky, this implies that countries whose domestic trade flows are concentrated in relatively few products experience greater gains from trade. It turns out that this tends to be the case for low-income countries. I also consider the welfare effects of the growth of Chinese exports and find that the gains from
trade are highly dependent on the similarities of countries’ patterns of comparative advantage with China’s in foreign markets. By contrast, an aggregate model predicts that the gains from China’s growth are driven by countries’ geographical proximity to China because, if the relative prices of countries’ exports are assumed to be affected uniformly, countries benefit from the lower prices of
Chinese exports in proportion to the share of their expenditure devoted to Chinese goods.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Discussion Section More often than not, any research study could be divided into two fractions, quantitative and qualitative (Bryman, 2006). It is highly advised, to leverage a mixed method approach to research (Bryman, 2006). A mixed method of study is one, which focuses on both quantitative and qualitative methods. It is established that qualitative methods are more beneficial to establish initial Null hypothesis and quantitative methods are more useful to prove or disprove the first Null hypothesis (Bryman, 2006).... [tags: Qualitative research, Scientific method]
1640 words (4.7 pages)
- Quantitative methods in the social sciences are an effective tool for understanding patterns and variation in social data. They are the systematic, numeric collection and objective analysis of data that can be generalized to a larger population and seek to find cause in variance (Matthews and Ross 2010, p.141; Henn et al. 2009, p.134). These methods are often debated, but quantitative measurement is important to the social sciences because of the numeric evidence that can be used to drive more in depth qualitative research and to focus regional policy, to name a few (Johnston et al.... [tags: Scientific method, Quantitative research]
1237 words (3.5 pages)
- Quantitative research involves the collection and converting of data into numerical form to enable statistical calculations be made and conclusions drawn. It provides a measure of how people think, feel or behave and uses the statistical analysis to determine the results. However, this measurement results in numbers, or data, being collected, which is then analyzed by using quantitative research methods (Byrne, 2007). There are hypotheses or questions that the researcher wants to address which includes predictions about the possible relationship between two they are investigating (variables).... [tags: Scientific method, Quantitative research]
1286 words (3.7 pages)
- In order to support or discard a hypothesis, research needs to be collected. When gathering research, a researcher can either use qualitative or quantitative research methods. Both of these research methods follow the scientific method. Qualitative and quantitative research starts with the researcher identifying a topic of interest. Identifying a topic, begins with a problem or question that someone wants to find the answer to. The topic can come from a personal experience driving the importance of the topic to be investigate but it should not limit the topic.... [tags: Scientific method, Quantitative research]
1450 words (4.1 pages)
- Qualitative vs. Quantitative Research According to Merriam-Webster, research is defined as careful study done to report new knowledge on a topic. ("Research | Definition of research by merriam-webster," n.d.). Success in the field of Guidance and Counseling is dependent on accurate information. Counselors well versed in pertinent research make a strong impact on the clients. Counselors using research as a guide for intervention have a better understanding of the clients why and also the how to serve the client best.... [tags: Qualitative research, Quantitative research]
794 words (2.3 pages)
- When it comes to research, there are two approaches that are effective in gathering reliable information, which is qualitative and quantitative research. It is important to be able to distinguish between the two, as they are very different and can often become confused as the other. Quantitative research is a type of research that uses numbers and measures gathered from a large sample population (Berg & Lune, 2012, p.3). In order to receive data, it uses paper surveys, online questionnaires, online polls, and telephone interviews as these methods can produce numerical results (Berg & Lune, 2012, p.3).... [tags: Qualitative research, Quantitative research]
2113 words (6 pages)
- Quantitative and qualitative research methods are the two central methods for conducting research. Although there are both advantages and disadvantages to each of these research methods, many researchers decide to merely utilize one of the methods, without exploring the other method at all. This is a problem as these researchers only get to analyze their research from one point of view rather than from differing points of view. In other words, these researchers will solely rely on numbers and statistics or solely rely on interviews and observations.... [tags: Quantitative research, Qualitative research]
1226 words (3.5 pages)
- AC 1.1, 2.1, 2.2 The qualitative research method involves analysing data, such as words, pictures or objects. It is more subjective, and requires the researcher to interpret data in order to form thematic ideas. Quantitative research can gather a large amount of data that can be easily organised and manipulated into reports for analysis. It often includes one to one interview. It utilises open- ended questions. This means that the researcher has to interpret their findings. Moreover, in qualitative research is used to generate hypotheses and develop an understanding about a particular group that uses words and images rather that numbers.... [tags: Quantitative research, Qualitative research]
1500 words (4.3 pages)
- Quantitative and Qualitative Research aims at establishing new information. It is a systematic approach of collecting and interpreting information aimed at improving the knowledge base (Suanders et al: 2009, p 5). Research strategy implies a broad orientation as to how to conduct any research. According to Creswell 2004(cited in Duffy & Chenail: 2008), research could be classified into quantitative research and qualitative research. At its simplest form, the former transforms human encounters into numbers while the latter transforms such experiences into words.... [tags: Scientific method, Quantitative research]
1273 words (3.6 pages)
- The use of quantitative data to solve a problem may seem as everyday and common sense-ish as any other problem solving style; perhaps even more so as it seems to make so much sense. First though – what exactly is quantitative data. It is measurable (through a suitable measure such as dollars, degrees, inches, millimeters) and verifiable data. It is however, amenable to statistical manipulation. Quantitative data defines whereas qualitative data describes (BusinessDictionary.com, 2010). Why then, don’t we – as a society – use it more.... [tags: Decision Models]
1798 words (5.1 pages)
- An Organization Of Cross Country Leadership And Communication
- The President And The Bureaucracy
- The Effects Of Using Paediatric Early Warning Scores
- Key Principles And Concepts Of Strategic Thinking
- Exploring Inferential Statistics And Their Discontents
- Scientific Inquiry : Qualitative And Quantitative