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Gravity variables such as distance, adjacency, colony, free trade agreements or language are used to capture the effects of trade costs in empirical studies. By using actual data on trade costs, this paper decomposes the overall effects of such variables on trade into those through three gravity...
Persistent link: https://www.econbiz.de/10012964551
. By using data on the number of bilaterally traded products we improve on identification and allow estimation of the … heteroscedasticity bias is large and important. -- gravity estimation ; heteroscedasticity in data ; intensive and extensive margin …
Persistent link: https://www.econbiz.de/10009011147
. By using data on the number of bilaterally traded products we improve on identification and allow estimation of the …
Persistent link: https://www.econbiz.de/10013128040
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 …
Persistent link: https://www.econbiz.de/10011450770
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
This paper assesses whether the sensitivity of bilateral trade volumes to various trade cost factors is constant or varies across countries. It utilizes a random coeffcients model and analyses a cross-sectional sample of bilateral trade data for 96 countries in 2005. We expect the elasticity of...
Persistent link: https://www.econbiz.de/10010371278
Using a gravity-type explanation of international trade flows at the industry level, it is shown that the pattern of comparative advantage in terms of sectoral export/import ratios in bilateral trade can be explained by relative income and relative per capita income. Total income of a country is...
Persistent link: https://www.econbiz.de/10011435012
Was the collapse of world trade between 1928 and 1937 caused by higher transport costs, increased protectionism or the … collapse of the gold standard? Using recent advances in the estimation of gravity equations, I examine the partial and general …
Persistent link: https://www.econbiz.de/10012023385
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 … empirical methodologies. They focus on a comparison of the distance and border effects across estimation techniques. For the …
Persistent link: https://www.econbiz.de/10011502657
We move beyond the nation-state as the unit of analysis and use subnational spatial variation to study the effect of the institutional environment on international trade. Additionally, we address the heterogeneous effect of trade agreements on different regions within a country. Employing a...
Persistent link: https://www.econbiz.de/10011614253