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Gravity and Extended Gravity : Using Moment Inequalities to Estimate a Model of Export Entry

Morales, Eduardo - 2014

Exporting firms often enter foreign markets that are similar to previous export destinations. We develop a dynamic model in which a firm's exports in a market may depend on how similar the market is to the firm's home country (gravity) and to its previous export destinations (extended gravity)....

Persistent link: https://www.econbiz.de/10013058240

Measuring Commuting and Economic Activity Inside Cities with Cell Phone Records

Kreindler, Gabriel E.; Miyauchi, Yuhei - 2022

We show how to use commuting flows to infer the spatial distribution of income within a city. A simple workplace choice … model predicts a gravity equation for commuting flows whose destination fixed effects correspond to wages. We implement this … data, yet achieves comparable predictive power. We show that hartals (transportation strikes) in Dhaka reduce commuting …

Persistent link: https://www.econbiz.de/10014242827

Estimating the Effect of Currency Unions on Trade and Output

Frankel, Jeffrey A.; Rose, Andrew - 2021

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; cross-sectional evidence indicates that trade stimulates output. This paper estimates the effect that currency union has, via trade, on output per capita. We use economic and geographic data for over 200...

Persistent link: https://www.econbiz.de/10013222899

The Trade and Investment Effects of Preferential Trading Arrangements

Dee, Philippa S.; Gali, V. Jyothi - 2021

This study quantifies the impact of traditional and new age' provisions of preferential trading arrangements (PTAs) on merchandise trade and investment. It does so by estimating gravity models of bilateral trade and investment. It finds that recent and some past PTAs are not as benign as some...

Persistent link: https://www.econbiz.de/10013234974

Fixed Exchange Rates and Trade

Klein, Michael W.; Shambaugh, Jay C. - 2021

A classic argument for a fixed exchange rate is its promotion of trade. Empirical support for this, however, is mixed. While one branch of research consistently shows a small negative effect of exchange rate volatility on trade, another, more recent, branch presents evidence of a large positive...

Persistent link: https://www.econbiz.de/10013237597

Specialization and the Volume of Trade : Do the Data Obey the Laws?

Harrigan, James - 2021

The core subjects of trade theory are the pattern and volume of trade: which goods are traded by which countries, and how much of those goods are traded. The first part of the paper discusses evidence on comparative advantage, with an emphasis on carefully connecting theory models to data...

Persistent link: https://www.econbiz.de/10013239950

One Reason Countries Pay Their Debts : Renegotiation and International Trade

Rose, Andrew - 2021

This paper estimates the effect of sovereign debt renegotiation on international trade. Sovereign default may be associated with a subsequent decline in international trade either because creditors want to deter default by debtors, or because trade finance dries up after default. To estimate the...

Persistent link: https://www.econbiz.de/10013240938

The Gravity Model

Anderson, James E. - 2010

gravity into recent practice has led to a richer and more accurate estimation and interpretation of the spatial relations …

Persistent link: https://www.econbiz.de/10013135403

Gravity, Scale and Exchange Rates

Anderson, James E. - 2013

We develop a structural gravity model that introduces scale effects in bilateral trade. Scale effects and incomplete passthrough give two channels through which exchange rates have real effects on trade patterns. Estimates from Canadian provincial trade data identify these effects through their...

Persistent link: https://www.econbiz.de/10013086673

Aggregation and the Gravity Equation

Redding, Stephen - 2019

One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristics, and destination characteristics. A key decision for researchers in...

Persistent link: https://www.econbiz.de/10012894434