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Helpman, Melitz and Rubinstein (2008) derive gravity equations to estimate effects of trade barriers on the intensive and extensive margins of trade. They exploit the frequency of zeros in aggregate bilateral trade data to identify effects on the extensive margin and to obtain controls for firm...
Persistent link: https://www.econbiz.de/10009011147
Gravity equations have been used for more than 50 years to estimate ex post the partial effects of trade costs on international trade flows, and the well-known - and traditionally presumed exogenous - "trade-cost elasticity" plays a central role in computing general equilibrium trade-flow and...
Persistent link: https://www.econbiz.de/10011309578
The paper applies the gravity model of international trade in its analysis of German exports. The added value of our research is derived from the innovative shift in focus from the traditional gravity model specifications to the national level in order to interpret its estimations in a...
Persistent link: https://www.econbiz.de/10010358344
The results generally confirm that Czech trade is oriented towards European countries and determined primarily by key economic factors of domestic and foreign GDP. The institutional variables remain largely insignificant, except corruption due tothe counterintuitive result that a higher...
Persistent link: https://www.econbiz.de/10010429918
The purpose of this paper is to examine Austrian foreign trade and estimate the country's export function. The analysis is based on the gravity model of trade in the log-log form, augmented by additional variables in order to control for the impact of institutions on decision-making. Our panel...
Persistent link: https://www.econbiz.de/10010344201
Helpman, Melitz and Rubinstein (2008) derive gravity equations to estimate effects of trade barriers on the intensive and extensive margins of trade. They exploit the frequency of zeros in aggregate bilateral trade data to identify effects on the extensive margin and to obtain controls for firm...
Persistent link: https://www.econbiz.de/10013128040
We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selection into trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting firms takes a gravity form, such that the extensive margin is also affected by...
Persistent link: https://www.econbiz.de/10013085999
Persistent link: https://www.econbiz.de/10013068347
We carry out an indirect inference test of two versions of a computable general equilibrium (CGE) model of world trade. One of these, the ‘classical’ model,is well-known as the Heckscher-Ohlin-Samuelson model of world trade, in which countries trade homogeneous products in world markets and...
Persistent link: https://www.econbiz.de/10012602338
The aim of the research presented in this paper is to assess the competitive potential of Polish agriculture (potential competitiveness) and the competitive position of the Polish agri-food sector on the Single European Market (SEM) with reference to the global context. The conducted research...
Persistent link: https://www.econbiz.de/10013234992