Population Density and Countries' Export Performance: A Supply-Side Structural Gravity with Unilateral Variables

Luca Lodi

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: This paper analyzes the effect of population density on international trade using a theoretical and empirical framework. It builds on the works of Allen and Arkolakis (2014), Allen et al. (2020) and Freeman et al. (2021) to derive a structural gravity model that identifies the impact of country-specific features on bilateral exports. The study interprets Heid et al. (2020) and Freeman et al. (2021) empirical approaches. Focusing on population density as a component of productivity and agglomeration, it explores how density influences country specialization and comparative advantages in labor-intensive or natural resource-dependent industries. The research suggests that population density significantly impacts manufacturing but negatively affects mining, with further investigation needed for agriculture, forestry, and fisheries.

Keywords: structural gravity model; economic geography; population density (search for similar items in EconPapers)
JEL-codes: F00 F12 F14 F19 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2024
New Economics Papers: this item is included in nep-geo and nep-int
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