Groizard, José Luis; Marques, Helena; Gallego Santana, … - Institut für Weltwirtschaft (IfW) - 2014
. First an augmented gravity model is estimated for mainland and island regions; then a Blinder-Oaxaca decomposition is … applied to the gravity estimation results in order to disentangle the distance and border effects for those regions, net of … all other factors controlled for in the gravity estimations. Results show that island regions are at a substantial …