We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic…
# Technology, Geography, and Trade
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## Bibliographic
- **DOI:** 10.1111/1468-0262.00352
- **Year:** 2002
- **Citations:** 4443
- **Open Access:** No (closed)
- **License:** —
- **Source:** https://doi.org/10.1111/1468-0262.00352
## Authors
- Jonathan Eaton
- Samuel Kortum
## Abstract
We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it). We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990. We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction. Copyright The Econometric Society 2002.
## Keywords
Economic geography, Geography, Economics, Regional science
## Concepts
- Economic geography
- Geography
- Economics
- Regional science
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Tóm lược học thuật (đã diễn giải): We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it). We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990. We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction. Copyright The Econometric Society 2002.
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1. We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium.
2. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it).
3. We estimate the parameters with data on bilateral trade in manufactures, prices, and geography from 19 OECD countries in 1990.
4. We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction.
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