Showing 1 - 10 of 19
This paper derives a micro-founded gravity equation based on a translog demand system that allows for flexible substitution patterns across goods. In contrast to the standard CES-based gravity equation, translog gravity generates an endogenous trade cost elasticity. Trade is more sensitive to...
Persistent link: https://www.econbiz.de/10011083929
shows that borders and distance impede trade by much more than tariffs or transports costs can explain. We therefore … inadequate information manifest themselves most strongly at national borders and over distance. …
Persistent link: https://www.econbiz.de/10011145400
. Service trade, however, like goods trade, is subject to strong distance effects, implying that the remote supply of services … large sample of countries and different categories of service trade. We find that distance costs are high but are declining …
Persistent link: https://www.econbiz.de/10005666777
which the coefficient of distance is allowed to change over time. In a standard specification, in which transport costs are … proxied only, it is found paradoxically that the absolute value of the elasticity of bilateral trade to distance has been … significantly increasing. The result is attributed to a relatively larger decline in costs independent of distance (such as handling …
Persistent link: https://www.econbiz.de/10005791432
assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i … distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if … understood as reducing distance, leads to more integration. …
Persistent link: https://www.econbiz.de/10005791570
This paper shows that proximity to major international financial centers seems to reduce business cycle volatility. In particular, we show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output...
Persistent link: https://www.econbiz.de/10005792227
It is generally assumed that distance in the gravity model strictly reflects frictions impeding bilateral trade … trade. This paper investigates the hypothesis that if we control for distance in the ordinary sense, differences North … influence of distance that has been occurring since World War II. This last hypothesis receives confirmation as well. Finally …
Persistent link: https://www.econbiz.de/10005792460
How much of China’s recent economic performance can be attributed to market-oriented reforms introduced in the last two decades? A long-run perspective may be important for understanding the process of economic development occurring today. This Paper compares the integration of rice markets in...
Persistent link: https://www.econbiz.de/10005136759
We construct and numerically solve a dynamic Heckscher-Ohlin model in which the initial distribution of production factors in the world makes worldwide factor price equalization impossible, and leads countries to group in two diversification cones. We study the dynamics of income per capita and...
Persistent link: https://www.econbiz.de/10005504435
In Centre for Economic Policy Research Discussion Paper Nos. 164 and 165 I presented econometric models of the industrialized countries (North) and the oil-importing developing countries (South). This paper links the two models so that the economic interdependence between North and South can be...
Persistent link: https://www.econbiz.de/10005504466