Similar Search Results

Is the border effect an artefact of geographic aggregation?

Llano Verduras, Carlos; Minondo, Asier; Requena … - 2010

Persistent link: https://www.econbiz.de/10010428293

FDI, trade integration and the border effect : evidence from the European Union

Martínez-San Román, Valeriano; Bengoa, Marta; … - 2014

This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern - horizontal versus vertica l- within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture trade...

Persistent link: https://www.econbiz.de/10010371905

Home sweet home : the home bias in trade in the European Union

Mika, Alina - 2017

This study examines the home bias in trade in goods and services within the European Union. Using the newest release of the World Input Output database, available for the years 2000-2014, the effect is estimated using gravity regressions. The trade-reducing effect of borders is found to be...

Persistent link: https://www.econbiz.de/10011636168

Law of one price, distance, and borders

Borraz, Fernando; Zipitría, Leandro - 2017

We propose a decomposition of the border effect in international trade by controlling for differences in competition in local markets. An extension of the Hotelling (1929) model shows that the availability of local substitutes increases price dispersion and biases the estimation of the border...

Persistent link: https://www.econbiz.de/10012114622

Estimating the gravity equation with the actual number of exporting firms

Minondo, Asier; Requena Silvente, Francisco - In: Estudios de economía 40 (2013) 1, pp. 5-19

To estimate correctly the effect of variable trade costs on firms’ exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that...

Persistent link: https://www.econbiz.de/10009766156

Economic integration agreements, border effects, and distance elasticities in the gravity equation

Bergstrand, Jeffrey H.; Larch, Mario; Yotov, Yoto V. - 2013

agreements, national borders, and bilateral distance. First, recent studies focusing on precise and unbiased estimates of effects … confirm recent evidence providing a solution to the “distance-elasticity puzzle,” but show that these estimates of the … declining effect of distance on international trade are biased upward by not accounting for endogenous EIA formations and …

Persistent link: https://www.econbiz.de/10010212649

Currency unions, trade, and heterogeneity

Chen, Natalie; Novy, Dennis - 2018

How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect of currency unions on international trade. While we...

Persistent link: https://www.econbiz.de/10011867116

Trade and unemployment in Germany : an empirical exploration and some theory

Klein, Martin; Weirowski, Tobias - 2011

This paper investigates the link between unemployment and external trade in Germany, using data on unemployment, international trade and economic activity for the 16 German federal states (Länder). With panel data econometrics we show that international trade as measured by state-wise trade...

Persistent link: https://www.econbiz.de/10009312089

Trade Flows and Trade Specialisation : The Case of China

Caporale, Guglielmo Maria - 2015

Using annual data for the period 1992-2012, this paper examines trade flows between China and its main trade partners in Asia, North America and Europe, and whether increasing trade has led to industrial structural adjustment and changes in China's trade patterns. The analysis is based on both...

Persistent link: https://www.econbiz.de/10013027626

Subnational income growth and international border effects

Adam, Hanna L.; Larch, Mario; Stadelmann, David - 2021

This paper analyses the effect of international borders and of trade agreements at international borders on subnational (i.e. regional) growth. We construct an extensive panel dataset covering 1,350 regions in 86 countries worldwide between 1950 and 2017. Our results show that international...

Persistent link: https://www.econbiz.de/10012533891