Gravity Equations are broadly used to estimate the impacts of trade impediments on trade flows. It is often stated that … results are implausibly high. In theoretical foundations of the gravity equation, trade costs usually enter as "icebergmelting …-costs". This paper offers an alternative approach to model trade costs. From a microeconomic point of view, trade costs should …

This paper investigates the potential for a further increase in trade between the fifteen old EU members and the twelve … there is further potential for trade resulting from the successive convergence of the new members ́institutional framework … towards EU standards. -- European integration ; institutions ; gravity model ; trade potential …

Existing literature repeatedly documented a strong correlation between trade and growth. It has also shown a causal … also because of potential second best world effects and the implied endogeneity of trade policy. Policy recommendations for …

Several empirical papers have shown that international trade has a positive causal effect on a country's GDP or growth … rate. A common conclusion from these results is that a free trade policy will increase a country's GDP. This comment does …

A basic assumption of the gravity equation of international trade is that increasing trade costs lower exports …. Butintuition and theory imply that a high export volume lowers bilateral trade costs as well, because a fixed cost intensivetrade … sector probably bears lower average costs with more trade. In this case, standard gravity estimation might bebiased due to …

The study examines the effect of financial crises on international trade with a gravity approach and a large data set … covering almost 70 importing and 200 exporting countries from 1950 to 2009. Thus it is possible to put the "Great Trade … important factors to explain the negative effects of a banking crisis on international trade. As the analysis indicates …