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Information matters: a theoretical comparison of some cross-border trade barriers

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journal contribution
posted on 08.11.2016, 10:10 by Christopher Wilson
There is widespread evidence that geographical borders reduce trade. This paper presents a theoretical model capable of providing a succinct comparison of three broad forms of trade barriers involving i) trade costs, ii) localized tastes, and iii) information frictions. Despite being traditionally under-researched, it provides the stark finding that information frictions often provide the relatively more powerful marginal effect in reducing cross-border trade, and associated levels of welfare. This result remains robust under a number of extensions that further document the roles of product differentiation and alternative forms of trade costs.

History

School

  • Business and Economics

Department

  • Economics

Published in

Information Economics and Policy

Pages

? - ? (9)

Citation

WILSON, C.M., 2017. Information matters: a theoretical comparison of some cross-border trade barriers. Information Economics and Policy, 37, pp. 52-60.

Publisher

© Elsevier

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

04/10/2016

Publication date

2017

Notes

This paper was accepted for publication in the journal Information Economics and Policy and the definitive published version is available at http://dx.doi.org/10.1016/j.infoecopol.2016.10.002

ISSN

1873-5975

Language

en

Exports