Gravity, Distance, and International Trade
Scott Baier (),
Amanda Kerr () and
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Amanda Kerr: Clemson University, Postal: John E. Walker Department of Economics, Clemson University, Clemson, SC USA 29634
No 2017-5, School of Economics Working Paper Series from LeBow College of Business, Drexel University
We review and interpret the main theoretical developments in the gravity literature from its very early, a-theoretical applications to the latest structural contributions. We also discuss challenges and implement methods to estimate empirical gravity equations. We finish with a presentation and examples of numerical simulations with the structural gravity model. Throughout the analysis we attempt to emphasize the links and importance of transportation costs for the trade literature and we outline avenues where we believe interdisciplinary contributions between the international trade and transportation economics fields will be most valuable.
Keywords: Structural Gravity; Estimation; Simulation; Transportation Costs (search for similar items in EconPapers)
JEL-codes: F10 F11 F14 F17 R40 (search for similar items in EconPapers)
Pages: 76 pages
New Economics Papers: this item is included in nep-geo, nep-hpe, nep-int and nep-tre
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Chapter: Gravity, distance, and international trade (2018)
Working Paper: Gravity, Distance, and International Trade (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2017_005
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