Comparing the fit of the gravity model for different cross-border flows

Wei-Kang Wong ()

Economics Letters, 2008, vol. 99, issue 3, pages 474-477

Abstract: This paper investigates how well the gravity model explains various cross-border flows that may lead to knowledge spillovers. It turns out that the model works well for trade and telephone traffic, but less satisfactorily for merger and acquisition flows.

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