On the Role of Distance for Bilateral Trade

Peter Egger

The World Economy, 2008, vol. 31, issue 5, 653-662

Abstract: This study addresses the role of distance in a partial equilibrium model of bilateral trade and tests hypotheses in a large panel data‐set of trade flows. The analysis obtains three implications regarding the empirical specification of trade frictions in gravity models. Two results illustrate the relevance of the approach.

Date: 2008
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