The Impact of Historical and Regional Networks on Trade Volumes in the Western Hemisphere: An Application of Two Gravity Models
نویسندگان
چکیده
The purpose of this paper to identify and analyze the effects of existing trade networks on bilateral trade volumes in the Western Hemisphere using two empirical specifications of the gravity model of international trade. The evidence suggests the trade behavior within the Western Hemisphere is highly influenced by relationships resulting from different types of linkages (i.e., networks). These networks are attributed to regionalism (via the enactment of regional trade agreements) and history (via the modern effects of former imperial relationships). Using a data-set encompassing the trade volumes for 32 countries in the Americas and 31 of their global trading partners during the 1990s, this study analyzes the extent of these networks. The results suggest that the estimated network effects are similar across the two empirical specifications of the model.
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