Although geography has been considered as an important factor in international trades, the spatial heterogeneity has not been fully investigated in the regression of the standard gravity models. This paper contributes to the literature by investigating how the gravity in bilateral trades works...

With the aim to boost job creation, the Government of India eyes in making the nation an influential export hub. India's export in services have increased from US$ 145.08 billion in 1999 to US$ 214.8 billion in 2019. The export-to-GDP ratio has risen quite rapidly in India since the 1990s, and...

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; cross-sectional evidence indicates that trade stimulates output. This paper estimates the effect that currency union has, via trade, on output per capita. We use economic and geographic data for over 200...

A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international trade. The panel data set used includes bilateral observations for five years spanning 1970 through 1990 for 186 countries. In this data set, there are over one hundred...

This study quantifies the impact of traditional and new age' provisions of preferential trading arrangements (PTAs) on merchandise trade and investment. It does so by estimating gravity models of bilateral trade and investment. It finds that recent and some past PTAs are not as benign as some...

This paper estimates the effect of sovereign debt renegotiation on international trade. Sovereign default may be associated with a subsequent decline in international trade either because creditors want to deter default by debtors, or because trade finance dries up after default. To estimate the...