Gravity with Intermediate Goods Trade

This paper derives the gravity equation with intermediate goods trade. We extend a standard monopolistic competition model to incorporate intermediate goods trade, and show that the gravity equation with intermediates trade is identical to the one without it except in that gross output should be use...

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Bibliographic Details
Main Authors: Sujin Jang, E. Young Song
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2017-12-01
Series:East Asian Economic Review
Subjects:
Online Access:http://dx.doi.org/10.11644/KIEP.EAER.2017.21.4.332