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    Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/62729


    Title: Trade Cost, Relative Demand and the Choice of Production Location: An Empirical Study of Trade in Creative Goods
    Authors: 徐則謙
    Hsu,Tsechien;Kuo, Biing-Shen;Peng, Su-Ling
    Contributors: 國貿系
    Date: 2013.06
    Issue Date: 2013-12-19 12:03:57 (UTC+8)
    Abstract: Exporting producers, facing a trade-off between scale economies and trade costs, tend to cluster around the countries with larger demand, the so-called `home market effect`. Hsu et al. (2012) cast doubt on estimates in previous empirical studies on the effect using gravity regression. The potential bias comes from ignoring the important interactive effect of relative demand and trade cost on locational choice and thus on trade patterns. Using a dataset on the trade flow of creative goods from APEC countries, we find that after controlling for the interactive term, the estimated coefficients on the elasticity of demand are much corrected toward those predicted by theory. This constitutes more credible evidence for the existence of the home market effect.
    Relation: Academia Economic Papers, 41(2), 297-326
    Data Type: article
    Appears in Collections:[國際經營與貿易學系 ] 期刊論文

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