Trade in Variety and Domestic Production: Evidence from US Manufacturing

Lewrick, Ulf and Mohler, Lukas and Weder, Rolf. (2016) Trade in Variety and Domestic Production: Evidence from US Manufacturing. Canadian Journal of Economics, 49 (4). pp. 1631-1657.

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Welfare gains from increasing product variety are an important source of the gains from international trade. Previous empirical studies, however, typically focus on measuring gains from imported varieties. This paper introduces a measure to analyze changes in domestically produced varieties to estimate the total variety gains. Our analysis suggests that, for US manufacturing, losses in domestic varieties from 1992 to 2006 seem substantial given the large decline in the number of US establishments. Yet, once we account for the reallocation of resources towards large multi-variety firms, we find considerable domestic variety gains, adding to those from imported varieties.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Aussenwirtschaft und Europ. Integration (Weder)
08 Cross-disciplinary Subjects > Europainstitut > Europainstitut > Europäische Wirtschaft (Weder)
UniBasel Contributors:Weder, Rolf and Mohler, Lukas and Lewrick, Ulf
Item Type:Article, refereed
Article Subtype:Research Article
Note:Publication type according to Uni Basel Research Database: Journal article
Identification Number:
Last Modified:03 Feb 2017 11:44
Deposited On:03 Feb 2017 11:44

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