Working Paper: NBER ID: w14662
Authors: Andrew B. Bernard; J. Bradford Jensen; Stephen J. Redding; Peter K. Schott
Abstract: Recent research in international trade emphasizes the importance of firms' extensive margins for understanding overall patterns of trade as well as how firms respond to specific events such as trade liberalization. In this paper, we use detailed U.S. trade statistics to provide a broad overview of how the margins of trade contribute to variation in U.S. imports and exports across trading partners, types of trade (i.e., arm's-length versus related-party) and both short and long time horizons. Among other results, we highlight the differential behavior of related-party and arm's-length trade in response to the 1997 Asian financial crisis.
Keywords: International Trade; Trade Margins; Macroeconomic Shocks; Asian Financial Crisis
JEL Codes: F1; F2; F3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| extensive margins (F12) | variation in imports and exports (F10) |
| intensive margin (C24) | variation in trade across one-year intervals (F14) |
| 1997 Asian financial crisis (F65) | extensive margins (F12) |
| 1997 Asian financial crisis (F65) | intensive margin (C24) |
| related-party trade (L14) | intensive margin (C24) |
| arms-length trade (F19) | intensive margin (C24) |
| multinational firms (F23) | trade behavior during economic crises (F44) |