The Distance Puzzle: On the Interpretation of the Distance Coefficient in Gravity Equations

Claudia Buch, Joern Kleinert () and Farid Toubal

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Although globalization has diminished the importance of distance, empirical gravity models find little change in distance coefficients. We argue that changing distance costs are largely reflected in the constant term. A proportional fall in distance costs is consistent with constant distance coefficients.

Keywords: Distance coefficients; Gravity equations; Globalization (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (86)

Published in Economics Letters, 2004, 83 (3), pp.293-298. ⟨10.1016/j.econlet.2003.10.022⟩

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Related works:
Journal Article: The distance puzzle: on the interpretation of the distance coefficient in gravity equations (2004)
Working Paper: The Distance Puzzle: On the Interpretation of the Distance Coefficient in Gravity Equations (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00311582

DOI: 10.1016/j.econlet.2003.10.022

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