Duan, Shuwen; Grant, Jason H. - Agricultural and Applied Economics Association - AAEA - 2012
International trade costs are known to be large but difficult to measure. Using a microfounded gravity equation based … on the framework in Novy (2011), this study estimates an indirect measure of multilateral trade costs for tradable goods … in agriculture. Using production and bilateral trade data along with plausible values of the elasticity of substitution …