The Gravity Equation with Micro-Founded Trade Costs
نویسندگان
چکیده
منابع مشابه
The Gravity Equation with Micro-founded Trade Costs
Gravity Equations are broadly used to estimate the impacts of trade impediments on trade flows. It is often stated that results are implausibly high. In theoretical foundations of the gravity equation, trade costs usually enter as "icebergmelting-costs". This paper offers an alternative approach to model trade costs. From a microeconomic point of view, trade costs should depend on trade input p...
متن کاملTrade Costs and Gravity for Gross and Value Added Trade
Cross-border production fragmentation enables countries to export domestic value added not only directly in the form of gross exports of final goods, but also indirectly by participating in global supply chains. This paper studies the determinants of trade in value added. I incorporate the global input-output structure into an international trade model to derive an approximate gravity equation ...
متن کاملThe Gravity Model and Iran's Trade Flows
This article has considered the volume and direction of Iran’s trade using the gravity model. The major issue in this analysis is to explore why Iran over or under-traded with the 76 countries relative to the predicted trade flows of the model. The study attempts to explore the reasons from the respect of both the model itself and Iran’s trade structure. This is done by analysing the performanc...
متن کاملGravity Redux : Structural Estimation of Gravity Equations with Asymmetric Bilateral Trade Costs ∗ December 18 , 2007
Theoretical foundations for estimating gravity equations were enhanced recently in Anderson and van Wincoop (2003). Though elegant, the model assumes symmetric bilateral trade costs to generate an estimable set of structural equations. In reality, however, trade costs (and trade flows) are not bilaterally symmetric. To allow for asymmetric bilateral trade costs, we provide an alternative framew...
متن کاملA Perfect Specialization Model for Gravity Equation in Bilateral Trade based on Production Structure
Although initially originated as a totally empirical relationship to explain the volume of trade between two partners, gravity equation has been the focus of several theoretic models that try to explain it. Specialization models are of great importance in providing a solid theoretic ground for gravity equation in bilateral trade. Some research papers try to improve specialization models by addi...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2009
ISSN: 1556-5068
DOI: 10.2139/ssrn.1552352