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This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 countries in 1999, we find that institutional distance...
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This article describes the development of international trade blocs world wide from the 1950s till 2010. We updated the …
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Earlier work established the notion that international terrorism harms international trade. This evidence was based on annual data with responses in the same year as attacks and incidents and on empirical models which ignored general equilibrium effects. We provide evidence that, if at all,...
Persistent link: https://www.econbiz.de/10010480595
This paper compares the traditional gravity model with a bidirectional approach when multilateral resistance is implemented to analyze the effect of inward foreign direct investment (FDI) on exports. We use cross-sectional HS trade data disaggregated at a 6-digit level in 2010 with controls for...
Persistent link: https://www.econbiz.de/10010411135
World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time … have not traded with each other in the past (extensive margin). We provide an empirical dissection of post-World-War- II … growth in manufacturing world trade along these two margins. We propose a "cornersolutions- version"of the gravity model to …
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