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...

Background: This paper measures the aggregate trade costs from 2000 to 2013, and dicusses the impact of China’s aggregate trade costs on comparative advantages and export share of 17 two-digit ISIC manufacturing industries. Methods: This paper takes China’s vertical specialization reality...