DOES HETEROGENEITY MATTER IN THE CONTEXT OF THE GRAVITY MODEL?

Laura Márquez-Ramos and Inmaculada Martínez-Zarzoso

Economics Bulletin, 2005, vol. 6, issue 17, 1-7

Abstract: This paper argues that there is a differential behaviour between the richest and the poorest economies in the gravity model framework. Results show that geographical and cultural factors are more important for developing than for developed economies, and a good economic policy in developing countries is to invest in technological innovation and in transport infrastructure.

Keywords: developed; and; developing; countries (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2005-10-20
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Citations: View citations in EconPapers (4)

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