Working paper icon

Working paper

The trade consequences of pricey oil

Abstract:

This paper examines the trade and trade-induced welfare effects of high oil prices. Using a gravity model of trade we find that the distance elasticity of trade significantly increases with the oil price. This suggests that high oil prices make trade less global. We estimate that an increase in the oil price from 100$ to 200$ would have the similar effect as imposing a world-wide import tariff between 4% and 9%, depending on the distance between countries. In turn, such higher trade costs wo...

Expand abstract
Publication status:
Published

Actions


Access Document


Files:
Publisher:
University of Oxford
Series:
OxCarre Papers
Publication date:
2013-06-03
Paper number:
115
Keywords:
Pubs id:
1143759
Local pid:
pubs:1143759
Deposit date:
2020-12-15

Terms of use


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP