Economics at your fingertips  

On the life and death of distance

Orestis Vravosinos

Theoretical and Applied Economics, 2017, vol. XXIV, issue 1(610), Spring, 207-214

Abstract: Buch et al. (2004) explain the “distance puzzle” suggesting that the distance coefficient only measures the importance of bilateral trade with distant countries relative to closer ones, while a large part of the positive effect of decreased distance costs on trade volumes can be captured in the intercept – expected to be positively influenced. Comparing the course of the intercept when trade growth is included to when removed (using an adjusted specification for the model), we do not seem to find any evidence that the impact of (assumed) decreased distance costs can be traced in the intercept. We also find no “death of distance” in “relative” trade over time, consistent with the majority of literature.

Keywords: gravity model; distance puzzle; distance coefficient; bilateral trade. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

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:

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Marin Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Bibliographic data for series maintained by Marin Dinu ().

Page updated 2019-09-03
Handle: RePEc:agr:journl:v:xxiv:y:2017:i:1(610):p:207-214