02275cas a2200313 a 4500 AALejournalIMF022898 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400208843 1018-5941 BD-DhAAL BD-DhAAL Cunat, Alejandro. Bilateral Trade Imbalances / Alejandro Cunat, Robert Zymek. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (83 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students If sectoral trade flows obey structural gravity, countries' bilateral trade imbalances are the result of macro trade imbalances, "triangular trade", or pairwise asymmetric trade barriers. Using data for 40 major economies and the Rest of the World, we show that large and pervasive asymmetries in trade barriers are required to account for most of the observed variation in bilateral imbalances. A dynamic quantitative trade model suggests that eliminating these asymmetries would significantly reduce bilateral (but not macro) imbalances and have sizeable impacts on welfare. We provide evidence that the asymmetries we measure are in part related to the policy environment: trade inside the European Single Market appears to be subject to more bilaterally symmetric frictions. Extending the same symmetry to all parts of the global economy would give a large boost to the real incomes of several non-E.U. countries. Mode of access: Internet Current Account Adjustment imf Economic Integration imf International Factor Movements and International Business imf Macroeconomic Aspects of International Trade and Finance imf Short-Term Capital Movements imf Zymek, Robert.. IMF Working Papers; Working Paper ; No. 2022/090 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=090 IMF e-Library