Blavy, Rodolphe (contributor); Juvenal, Luciana (contributor) - 2008
costs using the
estimated threshold bands, we �nd evidence that Mexico still faces higher transaction
costs than their … developed counterparts. Trade liberalization is associated with re-
duced transaction costs and lower relative price di …�erentials among countries. Other
determinants of transaction costs are distance and nominal exchange rate volatility.
Our results show …