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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/23091

Title: Information matters: a theoretical comparison of some cross-border trade barriers
Authors: Wilson, Chris M.
Keywords: Information frictions
Search costs
Trade costs
Localized tastes
Product differentiation
Issue Date: 2017
Publisher: © Elsevier
Citation: WILSON, C.M., 2017. Information matters: a theoretical comparison of some cross-border trade barriers. Information Economics and Policy, 37, pp. 52-60.
Abstract: 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.
Description: This paper is in closed access until 14th Oct 2018.
Version: Accepted for publication
DOI: 10.1016/j.infoecopol.2016.10.002
URI: https://dspace.lboro.ac.uk/2134/23091
Publisher Link: http://dx.doi.org/10.1016/j.infoecopol.2016.10.002
ISSN: 1873-5975
Appears in Collections:Closed Access (Economics)

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