What Can We Learn from Bilateral Trade? Gravity and Beyond

Jon Haveman () and David L. Hummels ()

Working Papers from Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER)

Abstract: Much empirical international trade reserach requires a careful analysis of bilateral trade patterns. In this paper we examine a commonly used technique called the gravity equation. Though the use of the gravity equation on aggregate data is well-grounded in monopolistic competition trade theory, we show that central predictions necessary for its derivation can be rejected with simple tests on disaggregated data.

Keywords: INTERNATIONAL; TRADE (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 1997
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:purkib:97-002

Access Statistics for this paper

More papers in Working Papers from Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER)
Address: Purdue University, Center for International Business Education and Research, Krannert Graduate School of Management, 1310 Krannert Building West Lafayette, Indiana 47907-1310.
Contact information at EDIRC.
Series data maintained by Thomas Krichel ().