Work detail

The Elasticity of Trade with Respect to Trade Costs: A Meta-Analysis

Author: Mgr. Anna Tlustá
Year: 2017 - summer
Leaders: prof. PhDr. Tomáš Havránek Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 90
Awards and prizes:
Abstract: The goal of this thesis is to present a meta-analysis of studies that are focused on the
relation between the international trade flow and the trade costs. The effect of trade
costs has become one ofthe key elementsto resolve the sixmajor puzzles in the bilateral
trade flow. I examine 1,090 estimates of the trade cost effect reported in 58 studies,
codify 51 aspects of study design that may influencetheestimates.Iuse meta-regression
analysis to investigate why trade costs effects vary. The results suggest that different
methods and mainly data characteristics systematically affect the estimated trade costs
effects. I find evidence for publication selection bias by using the appropriate tests. The
authors of primary studies tend to report preferentially large estimates of the elasticity
of trade with respect to trade costs. The evidence for publication selection bias is stronger
for studies reported in peer-reviewed journals than for unpublished studies.




Patria Finance
Česká Spořitelna