This paper assesses whether the sensitivity of bilateral trade volumes to various trade cost factors is constant or varies across countries. It utilizes a random coeffcients model and analyses a cross-sectional sample of bilateral trade data for 96 countries in 2005. We expect the elasticity of...

This paper assesses whether the sensitivity of bilateral trade volumes to various trade cost factors is constant or varies across countries. It utilizes a random coeffcients model and analyses a cross-sectional sample of bilateral trade data for 96 countries in 2005. We expect the elasticity of...

The present paper seeks to estimate how the impact of NTMs on trade can vary across export-import pairs by adopting a Heckman two-stage procedure of a gravity model that includes so-called comparative advantage variables. These variables consist of factor endowments of each trading partner and...