Brun, Jean-François; Carrère, Céline; de Melo, Jaime; … - C.E.P.R. Discussion Papers - 2002
This paper reports panel gravity estimates of aggregate bilateral trade for 130 countries over the period 1962-96 in which the coefficient of distance is allowed to change over time. In a standard specification, in which transport costs are proxied only, it is found paradoxically that the...