Trade4RR.pdf (312.7 kB)
Information matters: a theoretical comparison of some cross-border trade barriers
There is widespread evidence that geographical borders reduce trade. This paper
presents a theoretical model capable of providing a succinct comparison of three broad forms of trade barriers involving i) trade costs, ii) localized tastes, and iii) information frictions. Despite being traditionally under-researched, it provides the stark finding that information frictions often provide the relatively more powerful marginal effect in reducing cross-border trade, and associated levels of welfare. This result remains robust under a number of extensions that further document the roles of product differentiation and alternative forms of trade costs.
History
School
- Business and Economics
Department
- Economics
Published in
Information Economics and PolicyPages
? - ? (9)Citation
WILSON, C.M., 2017. Information matters: a theoretical comparison of some cross-border trade barriers. Information Economics and Policy, 37, pp. 52-60.Publisher
© ElsevierVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2016-10-04Publication date
2017Notes
This paper was accepted for publication in the journal Information Economics and Policy and the definitive published version is available at http://dx.doi.org/10.1016/j.infoecopol.2016.10.002ISSN
1873-5975Publisher version
Language
- en