This paper compares various estimation methods often used in the estimation of gravity models of international trade. The authors first discuss different structural and consistent estimation techniques, their underlying assumptions and their impact on estimated coefficients. They then estimate...

This paper compares various estimation techniques used to determine the impact of distance and borders on international trade. The results consistently confirm the significantly negative distance effect, while the border effect, measured by evaluating whether intra-continental trade exceeds...

This paper compares various estimation techniques used to determine the impact of distance and borders on international trade. The results consistently confirm the significantly negative distance effect, while the border effect, measured by evaluating whether intra-continental trade exceeds...

This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern - horizontal versus vertica l- within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture trade...

This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern -horizontal versus vertical- within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture trade...

This paper analyses the border effect on the Brazilian goods market, which indicates how biased intranational trade is compared to international trade. We quantify the border effect empirically using a cross-sectional gravity equation for twenty six Brazilian states plus the Federal District and...

This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern –horizontal versus vertical– within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture...

The objective of this paper is to examine the relationship between international trade and Foreign Direct Investment (FDI) empirically. It analyses whether the reduction of trade barriers over time has increased FDI for the particular case of the European Union (EU) during the period from 1995...

The “distance effect” measuring the elasticity of trade flows to distance has been to be rising since the early 1970s in a host of studies based on the gravity model, leading observers to call it the “distance puzzle”. We review the evidence and explanations. Using an extensive data set...

This paper assesses the Euro’s influence upon European trade by estimating two different indicators. The first is the so-called “Rose Effect”, while the second is the “Border Effect”. The former measures how much a country within a currency union trades more with its partners than with...