English, Article, Journal or magazine article edition: Globalization and the Gains from Variety: The Case of a Small Open Economy Lukas Mohler

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/7212
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Globalization and the Gains from Variety: The Case of a Small Open Economy
Author
  • Lukas Mohler
Physical Description
  • preprint
Notes
  • Since the pioneering work of Krugman (1980) economists try to quantify the welfare gains from an increase in traded variety. The seminal work of Feenstra (1994) and its application to the U.S. of Broda and Weinstein (2006) allowed this quantification for the first time using highly disaggregated trade data. In this paper it is argued that size and openness of a country are important factors in determining these welfare gains. The gains from traded variety of a small open economy are calculated and compared to those of the U.S.; the differences between the countries are then analysed carefully. To achieve this, the methodology of Feenstra (1994) is extended. While the Armington definition of a variety forces the researcher to assume no growth at the extensive margin, in this paper the Feenstra ratios are reinterpreted in a way that allows for full growth at the extensive margin. The resulting two polar cases will influence the country comparison with respect to the gains from variety: Depending on how much growth at the extensive margin a researcher is willing to assume, the relative gains from variety of a small open economy compared to a larger economy like the U.S. are changed. It is also argued that this result may hold generally for other small and large OECD economies.
  • Welfare Gains from Trade, Trade in Variety, Small Open Economy
  • RePEc:wsr:wpaper:y:2009:i:031
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment