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Geography, Trade and Power-law Phenomena

Pao-Li Chang () and Wen-Tai Hsu ()
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Pao-Li Chang: School of Economics, Singapore Management University

No 19-2018, Economics and Statistics Working Papers from Singapore Management University, School of Economics

Abstract: This article provides a review on the theories of various power-law phenomena related to geography and trade. In particular, we focus our discussion on the gravity equation of trade flows, the power law in firm size, and the link between the two - highlighting the roles of geography and trade in the theoretical modeling. We also discuss how these two power-law phenomena may be related to other power-law phenomena, such as those in income, firm productivity and city size.

Pages: 25 pages
Date: 2018-09-27
New Economics Papers: this item is included in nep-geo, nep-hpe, nep-int and nep-sea
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