Success in international trade depends, amongst other things, on distance from markets. Most new economic geography … models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how … paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an …

In this paper we claim that distance alone is a poor proxy for international transport costs in empirical studies. We … vary with two characteristics: with the distance between two locations and with the endogenous decision to invest in a more … the endogeneity of the investment decision. Our results confirm that transport prices are influenced by both the distance …

the gravity model find distance effects to be increasing rather than decreasing. We investigate countries' openness to … obtained with log-linear models of bilateral trade, distance effects (remoteness and land area) have declined over time. Trade …

within US states. After controlling for distance and country size, we estimate that relative to state-to-state trade …