Dynamics of Increased Trade of a Large Economy

Research Paper (postgraduate) from the year 2010 in the subject Economics - International Economic Relations, , course: Private work - technical-paper, language: English, abstract: This document explores the cross-sectional differences in export/import across the trading partners for a large economy, in terms of intensive and extensive margin, and investigates the extent to which the contribution of the margins to the cross-sectional differences evolves by year and by group of economies. Results reveal that an economy that is twice larger exports two times more and most of the variations in its export occur predominantly at the extensive margin, whereas the intensive margin accounts largely in the variations in its imports. However, a large developed country does export at the intensive margin, whereas the extensive margin account for a large part of the variations in a large (by doubling GDP PPP) for developing country's export.