New Method Reveals Country-Specific Trade Elasticities, Impacting Global Economies
The article discusses how different countries' trade flows are affected by changes in prices. By analyzing detailed trade data, the researchers found that the price sensitivity of a country's imports and exports can vary based on the types of goods being traded. They developed a method to estimate these price elasticities for over 30 countries, including both developed and developing nations. This helps us understand how countries respond to changes in prices when buying and selling goods internationally.