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This study analyzes the stability of the distance coefficient values over time in the generalized gravity equation of Bergstrand (1989) using both aggregate and disaggregated trade flows among 22 OECD countries recorded for the sample period covering 1970 until 2000. We estimate the gravity...
Persistent link: https://www.econbiz.de/10014213640
Persistent link: https://www.econbiz.de/10010220041
This paper examines the interactive effect of distance and trade on international conflict and cooperation. The effect of geographic distance depends on trade, while the effect of trade varies with geographic distance. Trade reduces conflict to a greater extent when dyads are geographically...
Persistent link: https://www.econbiz.de/10003283434
Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between …
Persistent link: https://www.econbiz.de/10011378320
We review and interpret the main theoretical developments in the gravity literature from its very early, a-theoretical applications to the latest structural contributions. We also discuss challenges and implement methods to estimate empirical gravity equations. We finish with a presentation and...
Persistent link: https://www.econbiz.de/10011611143
theory of international trade. …
Persistent link: https://www.econbiz.de/10010466292
Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has … general-equilibrium system. Next, we point out some anomalies with the theory: mounting evidence against constant trade …
Persistent link: https://www.econbiz.de/10012839359
Persistent link: https://www.econbiz.de/10011701177
The failure of declining trade-related costs to be reflected in estimates of the standard gravity model of bilateral trade might be called the ""missing globalization puzzle."" This puzzle is most apparent in the estimated distance coefficients found in the literature, which show no evidence of...
Persistent link: https://www.econbiz.de/10014401460
The failure of declining trade-related costs to be reflected in estimates of the standard gravity model of bilateral trade might be called the quot;missing globalization puzzle.quot; This puzzle is most apparent in the estimated distance coefficients found in the literature, which show no...
Persistent link: https://www.econbiz.de/10012752422