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To estimate correctly the effect of variable trade costs on firms’ exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that...
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within US states. After controlling for distance and country size, we estimate that relative to state-to-state trade …
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's exports and the distance to destination countries for Germany. To anticipate the most important result, it is shown that the … quality of exported goods and the distance to destination countries are not statistically positively correlated. …
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In a meta-analysis of spatial price transmission (PT) literature we aim to test for the presence of distance and border … them by airline distance and existence of a border. The findings indicate distance and border effects on both price …% compared with markets located in the same country. 1000 kilometers of distance reduces the probability of cointegration by 7 …
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