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spatial effect. The standard procedure until now was to account the transport cost using geographical distance as a proxy, and … the spatial effect trough a weighted matrix constructed on inverse distance. Two issues follow from this standard … procedure: the first regards the biasness of the distance if used as a proxy of the transport costs, the second is related to …
Persistent link: https://www.econbiz.de/10011397395
The Gravity Model is the workhorse for empirical studies in International Economies and it is commonly used in explaining the trade flow between countries. Recently, several studies have showed the importance of taking into account the spatial effect. Spatial Econometric techniques meet this...
Persistent link: https://www.econbiz.de/10011397401
Persistent link: https://www.econbiz.de/10011529856
The Gravity Model is the workhorse for empirical studies in International Economies and it is commonly used in explaining the trade flow between countries. Recently, several studies have showed the importance of taking into account the spatial effect. Spatial Econometric techniques meet this...
Persistent link: https://www.econbiz.de/10011561295
Nonlinear estimation of the gravity model with Poisson/negative binomial methods has become popular to model international trade flows, as it permits a better accounting for large numbers of zero flows. Nevertheless, as trade flows are not independent of each other due to spatial...
Persistent link: https://www.econbiz.de/10011881105