What drove US trade growth?

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Gary Hufbauer and Matthew Adler attribute 25% of US merchandise trade growth since 1980 to policy liberalisation. More surprisingly, they attribute only 3% to falling transportation costs. The rest? “The general expansion of the world economy,” a.k.a. the residual.

Their paper isn’t up on the web yet; I’ll have more comments once I see their methodology.

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