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Abstract

We estimate trade elasticities at the product level (6-digit of the Harmonized System comprising 5,000 product categories) by exploiting the variation in bilateral applied tariffs for each product category for the universe of available country pairs. This is done by constructing a repeated cross-section of applied tariffs and bilateral trade for the universe of exporters and importers, covering the period 2001 to 2016. The obtained elasticities are centered around -6. We finally highlight the differences in the gains from trade emerging from considering heterogeneous rather than average trade elasticities. All product level elasticities are made publicly available for sake of scrutiny and use by other researchers.

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