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Semiparametric estimation of varying trade elasticities in gravity

Yushan Hu () and Penglong Zhang ()

Economics Letters, 2021, vol. 209, issue C

Abstract: This paper uses the semiparametric method to estimate the trade elasticities varying to trade partners’ income per capita. The distance elasticity is relatively larger for South–South country pairs than North–North country pairs. Trade between homogeneous partners in terms of income is more distance-elastic than trade between heterogeneous partners.

Keywords: Semiparametric estimation; Trade elasticity; Gravity model (search for similar items in EconPapers)
JEL-codes: C14 F14 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.econlet.2021.110120

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