The view from space: Theory-based time-varying distances in the gravity model

Julian Hinz

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: I compute distances used in the gravity model of international trade that improve the existing measures along multiple lines and help remedy the border puzzle by up to 50%. I derive a trade cost aggregation that is agnostic to the underlying gravity framework while taking into account the economic geography of countries. Using this method I compute bilateral and internal country distances, making use of nightlight satellite imagery for information on the economic geography of countries.

JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-big, nep-geo and nep-int
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168270

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