International Trade in Variety and Domestic Production

Lewrick, Ulf and Mohler, Lukas and Weder, Rolf. (2011) International Trade in Variety and Domestic Production. WWZ Discussion Papers, 2011 (03). Basel.

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Official URL: http://edoc.unibas.ch/dok/A5848217

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Welfare gains from increasing product variety are an important source of the gains from international trade. Recent empirical studies have largely focused on measuring
the gains from an increased variety of imports. Trade theory, however, suggests that international trade heavily affects the variety of domestically produced goods as well.
To overcome the typical data limitations on domestic varieties, we employ the number of domestic establishments as a proxy of the number of domestic varieties and include
information on business dynamics to assess the importance of new and disappearing varieties. Our results suggest that for U.S. manufacturing, losses in domestic varieties from 1992 to 2006 are substantial and outweigh the gains from increased imported varieties.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Aussenwirtschaft und Europ. Integration (Weder)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Weder, Rolf
Item Type:Working Paper
Note: -- Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
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  • handle: RePEc:bsl:wpaper:2011/03
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Last Modified:13 Mar 2018 14:22
Deposited On:19 Jul 2013 07:36

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