Determinants of Recent Trade Flows in OECD Countries: Evidence from Gravity Panel Data Models
نویسندگان
چکیده
This paper aims to identify the main causes of recent trade flows in OECD countries. The specific features of the study include the explicit introduction of R&D and FDI as the two important explanatory variables, unit root tests in the panel data framework and careful treatment of endogeneity. The main findings are that the levels and similarities of market size, domestic R&D stock and inward FDI stock are positively related to the volume of bilateral trade, while the distance between trading countries has a negative impact. These findings lend support to new trade, FDI and economic growth theories.
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