Product heterogeneity, intangible barriers & distance decay : the effect of multiple dimensions of distance on trade across different product categories
Maureen B. M. Lankhuizen, Thomas de Graaff, Henri L. F. de Groot
This paper empirically examines the heterogeneity in the effects of multiple dimensions of distance on trade across detailed product groups. Using finite mixture modelling on bilateral trade data at the 3-digit SITC level, we endogenously group product categories into an, a priori unknown, number of segments based on estimated coefficients of multiple dimensions of distance in the gravity equation. The paper contributes to the literature by offering a new classification of products into homogeneous groups. We find that distance decay functions in a gravity model of international trade at a disaggregate level reveal a complex process that involve location characteristics (comparative and natural advantages, demand patterns or preferences) as well as intrinsic sensitivity of trade to multiple dimensions of distance.
Year of publication: |
May 29, 2012
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Authors: | Lankhuizen, Maureen ; Graaff, Thomas de ; Groot, Henri L. F. de |
Published in: | |
Publisher: |
[Louvain-la-Neuve] : European Regional Science Association |
Subject: | bilateral trade | gravity models | cultural distance | institutions | product heterogeneity | finite mixture modelling | Gravitationsmodell | Gravity model | Geographische Entfernung | Geographic distance | Außenhandel | Foreign trade | Handelshemmnisse | Trade barriers | Schätzung | Estimation | Internationale Arbeitsteilung | International division of labour | OECD-Staaten | OECD countries |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 25 Seiten) Illustrationen |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Graue Literatur ; Non-commercial literature ; Konferenzbeitrag ; Conference paper |
Language: | English |
Other identifiers: | hdl:10419/120493 [Handle] |
Classification: | F14 - Country and Industry Studies of Trade ; F21 - International Investment; Long-Term Capital Movements ; F23 - Multinational Firms; International Business |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011521702