The Three Puzzles in the Gravity Model of International Trade

Akira Sasahara

No DP2026-002, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: This article provides an overview of three puzzles related to the gravity model of trade---the Glick–Rose puzzle, the border puzzle, and the missing globalization puzzle. It summarizes recent developments in estimation methods, including the shift from cross-sectional to panel settings, the inclusion of appropriate fixed effects, and the shift from log-linear specifications to nonlinear approaches.

Keywords: The gravity model of trade; the Glick-Rose puzzle; the border puzzle; the missing globalization puzzle (search for similar items in EconPapers)
JEL-codes: F14 F43 O47 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2026-02-20
New Economics Papers: this item is included in nep-int and nep-opm
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:dp2026-002

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