Explaining disaggregated trade data with ricardian trade model

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buir.advisorPehlivan, Ayse Özgür
dc.contributor.authorKorkmaz, Halil İbrahim
dc.date.accessioned2016-07-01T11:12:03Z
dc.date.available2016-07-01T11:12:03Z
dc.date.issued2015
dc.departmentDepartment of Economicsen_US
dc.descriptionCataloged from PDF version of article.en_US
dc.description.abstractThe aim of this thesis is to explain how disaggregated-product level trade data fits into Eaton and Kortum (2002) type Ricardian trade model. In their paper, Eaton and Kortum (2002) explain the effect of geographical barriers and technological differences on trade between countries using data at aggregate level. Their model with perfect competition and constant marginal costs actually implies that the countries who have the lowest cost in supplying a particular good to a particular destination should capture the entire demand for that good in that destination. However, this is not what is observed in disaggregated bilateral trade data even in the least aggregated level. In this thesis, we propose alternative explanations such as capacity constraints and increasing marginal costs to reconcile Eaton and Kortum (2002) setup with disaggregated bilateral trade data. Our aim is to investigate why one seller is not able to win the entire market. The results suggest that costs are not increasing with trade quantities thus constant marginal costs is still possible. To explain multiple sellers for each good and the fact that each exporter sells at a different unit price. It could be the case that exporters are bounded by capacity constraints for each good in a given market. We report relative productivities of exporters at each destination where we report to a destination with a low trade cost even low productive firms can compete but for destinations with a high trade costs only most productive firms export.en_US
dc.description.degreeM.A.en_US
dc.description.statementofresponsibilityKorkmaz, Halil İbrahimen_US
dc.format.extentx, 48 leavesen_US
dc.identifier.itemidB151233
dc.identifier.urihttp://hdl.handle.net/11693/30087
dc.language.isoEnglishen_US
dc.publisherBilkent Universityen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectRicardian trade modelen_US
dc.subjectbilateral tradeen_US
dc.subjecttotal factor productivityen_US
dc.subjectincreasing marginal costsen_US
dc.subject.lccB151233en_US
dc.titleExplaining disaggregated trade data with ricardian trade modelen_US
dc.typeThesisen_US
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