We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs - measured by linguistic and geographical proximity - are more relevant for trade that reflects cross-border...

This paper applies the augmented gravity model to study the changing pattern of Ghana's bilateral trade flows and to extract practical trade policy implications. Economic classification dummies are included in the gravity equation to characterize the peculiarity of South-South and North-South...

This study sought to approximate trade potentials of the TPP Agreement with a special consideration at the level of complementarity. To accomplish the objective, we utilized an augmented gravity model on agriculture and manufacturing sectors, spanning the period 2000-2010. Our results suggested...

The aim of this paper is to review the state of art regarding the theoretical foundations of gravity equations applied to trade flows. Micro-foundations of the supply side and of the demand side are presented such as new models where a) general equilibrium constraints are taken into account b)...

The study examines the effect of financial crises on international trade with a gravity approach and a large data set covering almost 70 importing and 200 exporting countries from 1950 to 2009. Thus it is possible to put the "Great Trade Collapse" witnessed during the financial crisis 2008/2009,...

Personal characteristics of migrants could help to strengthen the impact of migrant networks on bilateral trade. While most of the attention has been focused on immigrants' educational attainment, this paper focuses on the relevance of the tasks carried out by migrants. Our empirical results...

We show that the countries of the former Austro-Hungarian monarchy trade significantly more with one another in the aftermath of the collapse of the Iron Curtain than predicted by a standard gravity model. This trade surplus declines linearly and monotonically over time. We argue that these...

This paper studies the role of reduced barriers to international trade from two dimensions: (i) the implementation of Free Trade Agreements and (ii) declining "border effects". Our empirical estimates suggest that diminished border effects accounts for the bulk of the increase in international...

Using a gravity-like approach, we study how Covid-19 deaths and lockdown policies affected countries' imports from China during 2020. We find that a country's own Covid-19 deaths and lockdowns significantly reduced its imports from China, suggesting that the negative demand effects prevailed...