The core and periphery of the world economy

Jarko Fidrmuc ()

Journal of International Trade & Economic Development, 2004, vol. 13, issue 1, pages 89-106

Abstract: This paper reviews three models of foreign trade, including the Heckscher-Ohlin model, the new trade theory based on increasing returns to scale, and the model of economic geography and trade with agglomeration effects. It demonstrates that gravity models perform relatively well for differentiated and non-differentiated products. This result supports Hummels' and Levinsohn's (1995) critique of the new theory foundation of the gravity equation. Furthermore, the bilateral trade relations of peripheral countries are often identified as outliers. This pattern of outliers is consistent with the model of geography and trade.

Keywords: Differentiated Products; Gravity Models; Economic Geography; Outlier Analysis (search for similar items in EconPapers)
Date: 2004
View list of references View citations in EconPapers

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?tar ... &id=3LP680DL0F8E1748 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:13:y:2004:i:1:p:89-106

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Journal of International Trade & Economic Development is edited by Pasquale M. Sgro and Bharat R. Hazari

More articles in Journal of International Trade & Economic Development from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().