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Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between …
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The gravity model is a workhorse tool that has been widely used in international trade. However, one empirical question that frequently arises is related to the conceptualization and measurement of distance. To overcome this limitation, our study proposes an index of distance based on...
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Using a novel common econometric specification, we examine the measurement of three important effects in international trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration agreements, national borders, and bilateral distance....
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results through a gravity theory of trade patterns, augmented with information frictions. We provide comparative statics …
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