Determinants of Bilateral Trade Flows in OECD Countries: Evidence from Gravity Panel Data Models
Yingqi Wei and
The World Economy, 2010, vol. 33, issue 7, 894-915
This paper aims to identify the main causes of bilateral trade flows in OECD countries. The specific features of the study include the explicit introduction of R&D and FDI as the two important explanatory variables, conduct of unit root tests in the panel data framework and careful consideration of endogeneity. The main findings are that the levels and similarities of market size, domestic R&D stock and inward FDI stock are positively related to bilateral trade, while the distance, measured by both geographical distance and relative factor endowment, between trade partner countries has a negative impact. These findings lend support to new trade, FDI and new growth theories.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:33:y:2010:i:7:p:894-915
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920
Access Statistics for this article
The World Economy is currently edited by David Greenaway
More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().