Dataset
Globalization, Trade, and Inequality: Evidence from a New Database
2024
Abstract
Analyzing and simulating trade policy scenarios in a complex and intertwined global
economy requires a database with a complete bilateral trade matrix at the level of
highly disaggregated industries over several decades. Such a database has not
been created until now. This paper introduces the International Trade and Production Database for Simulation (ITPD-S). In combination with the International Trade
and Production Database for Estimation (ITPD-E), we use it to quantify the impact of
globalization on bilateral trade, real income, and inequality in the world at the detailed
industry level in 1990-2019. To perform the analysis, we rely on a new quantitative
trade model that enables us to estimate the magnitude of globalization and then perform a counterfactual analysis of the impact of globalization on real output within the
same framework. Our estimates reveal that, on average, bilateral globalization forces
have led to a remarkable increase in international trade of about 570%, between 1990
and 2019, with very wide but intuitive variation across industries. Our counterfactual
analysis reveals that globalization has benefited most countries but relatively more so
smaller and more open economies, which are typically developing countries. As a
result, this ‘catch-up’ implies less cross-country income inequality.
Metrics
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Details
- Title
- Globalization, Trade, and Inequality: Evidence from a New Database
- Creators
- Ingo BorchertMario LarchSerge ShikherYoto Yotov
- Publisher
- United States International Trade Commission
- Resource Type
- Dataset
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Other Identifier
- 991022047277004721