Structural Change and Global Trade

Warning Icon This event is in the past.

Date: September 24, 2020
Time: 12:30 p.m. - 2:00 p.m.
Location: https://wayne-edu.zoom.us/j/95624290198?pwd=a2s4MVFEdVBzT1hCM3Q0VEVHNkcydz09
Category: Seminar

Michael Sposi
Department of Economics
Southern Methodist University

Structural Change and Global Trade

Zoom Link
Download flyer
Link to paper

Services, which are less traded than goods, rose from 58% of world expenditure in 1970 to 79% in 2015. Using a Ricardian trade model incorporating endogenous structural change, we quantify how this substantial shift in consumption has affected trade. Without structural change, we find that the world trade to GDP ratio would be 15 percentage points higher by 2015, about half the boost delivered from declining trade costs. In addition, this structural change has lowered the global welfare gains from trade integration by almost 40% over the past four decades. Absent further reductions in trade costs, ongoing structural change implies that world trade as a share of GDP would eventually decline. Going forward, higher income countries gain relatively more from reducing services trade costs than from reducing goods trade costs.


Contact

Shooshan Danagoulian
313-577-1078
fr4523@wayne.edu

Cost

Free

Audience

Academic staff, Faculty, Prospective students