Exploiting the structural developments suggested by the geography-of-trade literature, we estimate the elasticity of substitution across regional varieties for six crude grades and seven refined products using fixed-effects gravity regressions. We use unique data, compiled by Al-Qahtani (2008),...

Not only access to the factors of production - capital, labour and energy - but also substitutability among these factors has a strong influence on how economies change and evolve. Numerous studies have considered interfactor substitution for industrial countries. But, since only a few have been...