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Article : An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model

An essential guide which provides the most recent tools for analysis of trade policy using structural gravity models
Thèmes commerciaux

Description :

Yoto V. Yotov, Roberta Piermartini, José-Antonio Monteiro, and Mario Larch

An Advanced Guide to Trade Policy Analysis is a follow up to A Practical Guide to Trade Policy Analysis. The Advanced Guide provides the most recent tools for analysis of trade policy using structural gravity models. Written by experts who have contributed to the development of theoretical and empirical methods in the academic gravity literature and who have rich practical experience in the field, this publication explains how to conduct partial equilibrium estimations as well as general equilibrium analysis with structural gravity models and contains practical guidance on how to apply these tools to concrete policy questions.

This Advanced Guide has been developed to contribute to the enhancement of developing countries’ capacity to analyse and implement trade policy. It is aimed at government experts engaged in trade negotiations, as well as graduate students and researchers involved in trade-related study or research.

Published November 2016 | 144 pages | 297 x 210 mm | Weight: 0.400 kg

Introduction 5
A. The gravity model: a workhorse of applied international trade analysis 5
B. Using this guide 6
> CHAPTER 1: PARTIAL EQUILIBRIUM TRADE POLICY ANALYSIS WITH STRUCTURAL GRAVITY 9
A. Overview and learning objectives 11
B. Analytical tools 12
1. Structural gravity: from theory to empirics 12
2. Gravity estimation: challenges, solutions and best practices 17
3. Gravity estimates: interpretation and aggregation 28
4. Gravity data: sources and limitations 32
C. Applications 40
1. Traditional gravity estimates 41
2. The “distance puzzle” resolved 45
3. Regional trade agreements effects 49
D. Exercises 55
1. Estimating the effects of the WTO accession 55
2. Estimating the effects of unilateral trade policy 56
Appendices 57
Appendix A: Structural gravity from supply side 57
Appendix B: Structural gravity with tariffs 60
Appendix C: Databases and data sources links summary 63
> Chapter 2: General equilibrium trade policy analysis with structural gravity 67
A. Overview and learning objectives 69
B. Analytical tools 70
1. Structural gravity: general equilibrium context 70
2. Standard approach to general equilibrium analysis with structural gravity 88
3. A general equilibrium gravity analysis with the Poisson Pseudo Maximum Likelihood (GEPPML) 95
C. Applications 102
1. Trade without borders 103
2. Impact of regional trade agreements 111
D. Exercises 117
1. Calculating the general equilibrium impacts of removing a specific border 117
2. Calculating the general equilibrium impacts of a regional trade agreement 118
Appendices 119
Appendix A: Counterfactual analysis using
supply-side gravity framework 119
Appendix B: Structural gravity with sectors 121
Appendix C: Structural gravity system in changes 126
References 131


Édition : English 978-92-870-4123-4 Paperback

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