The trade consequences of pricey oil

This paper examines the trade and trade-induced welfare effects of high oil prices. Using a gravity model of trade we find that the distance elasticity of trade significantly increases with the oil price. This suggests that high oil prices make trade less global. We estimate that an increase in the...

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Bibliographic Details
Main Authors: Below, D, Vezina, P
Format: Working paper
Published: University of Oxford 2013