Trade Costs and Current Accounts

Nedoncelle, Clément

Type de document :

Compte-rendu et recension critique d'ouvrage

DOI :

10.1111/twec.12318

Titre :

Trade Costs and Current Accounts

Auteur(s) :

Nedoncelle, Clément [Auteur]
Lille économie management - UMR 9221 [LEM]

Titre de la revue :

The World Economy

Pagination :

1653--1672

Date de publication :

2015-09

Mot(s)-clé(s) en anglais :

trade cost reductions
account imbalances
production patterns

Discipline(s) HAL :

Sciences de l'Homme et Société/Economies et finances

Résumé en anglais : [en]

Are trade cost reductions a plausible explanation for growing global current account imbalances? I advocate that changes in trade costs affect trade and production structures, which is likely to affect national savings and ...
Lire la suite >Are trade cost reductions a plausible explanation for growing global current account imbalances? I advocate that changes in trade costs affect trade and production structures, which is likely to affect national savings and investment. Explicitly adding trade costs à la Markusen and Venables into Jin's framework, this augmented model predicts that trade cost reductions affect the current account through changes in the industrial structure. Empirical evidence confirms that the interaction of trade costs and capital intensity drives current account balances. I also provide evidence that the response of current accounts to changes in trade costs depends on the capital intensity of production and on the depth of regional agreements on trade and factor mobility. Aside from the direct effect generally emphasised in standard macro-level analysis, changes in production patterns could therefore be an additional channel of impact of regional integration on current accounts.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :