Has Distance Died? : Evidence from a Panel Gravity Model
The estimated coefficient of distance on the volume of trade is generally found to increase rather than decrease through time using the traditional gravity model of trade. This distance puzzle proved robust to several ad hoc versions of the model u...
| Main Authors: | , , , |
|---|---|
| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Published by Oxford University Press on behalf of the World Bank
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/17747607/distance-died-evidence-panel-gravity-model http://hdl.handle.net/10986/16487 |
| id |
okr-10986-16487 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-164872021-04-23T14:03:29Z Has Distance Died? : Evidence from a Panel Gravity Model Brun, Jean-Francois Carrere, Celine Guillaumont, Patrick de Melo, Jaime ABSOLUTE VALUE AGGREGATE TRADE BILATERAL IMPORTS BILATERAL TRADE BILATERAL TRADE DATA CD COEFFICIENT ESTIMATE COMMODITY COMMON COLONIZER COMMON CURRENCY COMMON MARKET CONSTANT ELASTICITY OF SUBSTITUTION CONSUMPTION PRICE INDEX CONTRACT ENFORCEMENT COST OF TRANSPORT COUNTRY DUMMY COUNTRY DUMMY VARIABLES COUNTRY FIXED EFFECTS CURRENCY CURRENCY UNION CURRENCY UNIONS CURRENCY VALUE DEPENDENT VARIABLE DEPRECIATION DEVELOPING ECONOMIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUBSTITUTION ELASTICITY OF TRADE ELASTICITY OF ~ ~ SUBSTITUTION ENDOGENOUS VARIABLES ERROR TERM EXCHANGE RATE UNCERTAINTY EXCHANGE RATE VOLATILITY EXOGENOUS VARIABLES EXPLANATORY VARIABLES EXPORTER EXPORTERS EXPORTS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FIXED EFFECTS FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AREA FREIGHT FREIGHT COSTS GDP GDP DEFLATOR GLOBALIZATION GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT HIGH-INCOME COUNTRIES IMPORT INCOME INCOME ELASTICITY INCOME ELASTICITY OF DEMAND INCOME GROWTH INCREASING RETURNS INDUSTRIAL COUNTRIES INDUSTRIALIZATION INSTRUMENTAL VARIABLE INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LAND TRANSPORT LOW-INCOME COUNTRIES MACROECONOMICS MARGINAL COST MARITIME TRANSPORT MODE OF TRANSPORT MONETARY UNION MONOPOLISTIC COMPETITION MULTILATERAL TRADE MULTILATERAL TRADE ARRANGEMENTS OIL PRICE OIL PRICES PATTERN OF TRADE PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEX PRICE INDEXES PRICE OF OIL PRICE RATIOS PRIMARY COMMODITIES RAILWAYS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONALISM REGIONALIZATION RELATIVE PRICES ROADS ROBUSTNESS CHECKS ROUTES SERIAL CORRELATION SMALL COUNTRIES SPECIALIZATION SUPPLY SIDE TECHNOLOGICAL CHANGES TOTAL EXPORTS TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE COSTS TRADE MORE TRADE PARTNER TRADE PATTERNS TRADE RELATIONSHIPS TRADE STATISTICS TRADING BLOCS TRADING PARTNERS TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COST TRANSPORTATION COSTS UTILITY FUNCTION UTILITY MAXIMIZATION VOLUME OF TRADE WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION The estimated coefficient of distance on the volume of trade is generally found to increase rather than decrease through time using the traditional gravity model of trade. This distance puzzle proved robust to several ad hoc versions of the model using data for 1962-96 for a large sample of 130 countries. The introduction of an augmented barrier to trade function removes the paradox, yielding a decline in the estimate of the elasticity of trade to distance of about 11 percent over the 35-year period for the whole sample. However, the death of distance is shown to be largely confined to bilateral trade between rich countries, with poor countries becoming marginalized. 2014-01-03T21:32:27Z 2014-01-03T21:32:27Z 2005-01 Journal Article http://documents.worldbank.org/curated/en/2005/01/17747607/distance-died-evidence-panel-gravity-model World Bank Economic Review doi:10.1093/wber/lhi004 http://hdl.handle.net/10986/16487 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABSOLUTE VALUE AGGREGATE TRADE BILATERAL IMPORTS BILATERAL TRADE BILATERAL TRADE DATA CD COEFFICIENT ESTIMATE COMMODITY COMMON COLONIZER COMMON CURRENCY COMMON MARKET CONSTANT ELASTICITY OF SUBSTITUTION CONSUMPTION PRICE INDEX CONTRACT ENFORCEMENT COST OF TRANSPORT COUNTRY DUMMY COUNTRY DUMMY VARIABLES COUNTRY FIXED EFFECTS CURRENCY CURRENCY UNION CURRENCY UNIONS CURRENCY VALUE DEPENDENT VARIABLE DEPRECIATION DEVELOPING ECONOMIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUBSTITUTION ELASTICITY OF TRADE ELASTICITY OF ~ ~ SUBSTITUTION ENDOGENOUS VARIABLES ERROR TERM EXCHANGE RATE UNCERTAINTY EXCHANGE RATE VOLATILITY EXOGENOUS VARIABLES EXPLANATORY VARIABLES EXPORTER EXPORTERS EXPORTS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FIXED EFFECTS FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AREA FREIGHT FREIGHT COSTS GDP GDP DEFLATOR GLOBALIZATION GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT HIGH-INCOME COUNTRIES IMPORT INCOME INCOME ELASTICITY INCOME ELASTICITY OF DEMAND INCOME GROWTH INCREASING RETURNS INDUSTRIAL COUNTRIES INDUSTRIALIZATION INSTRUMENTAL VARIABLE INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LAND TRANSPORT LOW-INCOME COUNTRIES MACROECONOMICS MARGINAL COST MARITIME TRANSPORT MODE OF TRANSPORT MONETARY UNION MONOPOLISTIC COMPETITION MULTILATERAL TRADE MULTILATERAL TRADE ARRANGEMENTS OIL PRICE OIL PRICES PATTERN OF TRADE PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEX PRICE INDEXES PRICE OF OIL PRICE RATIOS PRIMARY COMMODITIES RAILWAYS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONALISM REGIONALIZATION RELATIVE PRICES ROADS ROBUSTNESS CHECKS ROUTES SERIAL CORRELATION SMALL COUNTRIES SPECIALIZATION SUPPLY SIDE TECHNOLOGICAL CHANGES TOTAL EXPORTS TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE COSTS TRADE MORE TRADE PARTNER TRADE PATTERNS TRADE RELATIONSHIPS TRADE STATISTICS TRADING BLOCS TRADING PARTNERS TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COST TRANSPORTATION COSTS UTILITY FUNCTION UTILITY MAXIMIZATION VOLUME OF TRADE WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
ABSOLUTE VALUE AGGREGATE TRADE BILATERAL IMPORTS BILATERAL TRADE BILATERAL TRADE DATA CD COEFFICIENT ESTIMATE COMMODITY COMMON COLONIZER COMMON CURRENCY COMMON MARKET CONSTANT ELASTICITY OF SUBSTITUTION CONSUMPTION PRICE INDEX CONTRACT ENFORCEMENT COST OF TRANSPORT COUNTRY DUMMY COUNTRY DUMMY VARIABLES COUNTRY FIXED EFFECTS CURRENCY CURRENCY UNION CURRENCY UNIONS CURRENCY VALUE DEPENDENT VARIABLE DEPRECIATION DEVELOPING ECONOMIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUBSTITUTION ELASTICITY OF TRADE ELASTICITY OF ~ ~ SUBSTITUTION ENDOGENOUS VARIABLES ERROR TERM EXCHANGE RATE UNCERTAINTY EXCHANGE RATE VOLATILITY EXOGENOUS VARIABLES EXPLANATORY VARIABLES EXPORTER EXPORTERS EXPORTS FACTOR ENDOWMENTS FEDERAL RESERVE FEDERAL RESERVE BANK FIXED EFFECTS FOREIGN DIRECT INVESTMENT FREE TRADE FREE TRADE AREA FREIGHT FREIGHT COSTS GDP GDP DEFLATOR GLOBALIZATION GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT HIGH-INCOME COUNTRIES IMPORT INCOME INCOME ELASTICITY INCOME ELASTICITY OF DEMAND INCOME GROWTH INCREASING RETURNS INDUSTRIAL COUNTRIES INDUSTRIALIZATION INSTRUMENTAL VARIABLE INSTRUMENTAL VARIABLES INSURANCE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LAND TRANSPORT LOW-INCOME COUNTRIES MACROECONOMICS MARGINAL COST MARITIME TRANSPORT MODE OF TRANSPORT MONETARY UNION MONOPOLISTIC COMPETITION MULTILATERAL TRADE MULTILATERAL TRADE ARRANGEMENTS OIL PRICE OIL PRICES PATTERN OF TRADE PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEX PRICE INDEXES PRICE OF OIL PRICE RATIOS PRIMARY COMMODITIES RAILWAYS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE RATE REAL EXCHANGE RATES REGIONALISM REGIONALIZATION RELATIVE PRICES ROADS ROBUSTNESS CHECKS ROUTES SERIAL CORRELATION SMALL COUNTRIES SPECIALIZATION SUPPLY SIDE TECHNOLOGICAL CHANGES TOTAL EXPORTS TRADE AGREEMENTS TRADE BARRIER TRADE BARRIERS TRADE COSTS TRADE MORE TRADE PARTNER TRADE PATTERNS TRADE RELATIONSHIPS TRADE STATISTICS TRADING BLOCS TRADING PARTNERS TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COST TRANSPORTATION COSTS UTILITY FUNCTION UTILITY MAXIMIZATION VOLUME OF TRADE WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION Brun, Jean-Francois Carrere, Celine Guillaumont, Patrick de Melo, Jaime Has Distance Died? : Evidence from a Panel Gravity Model |
| description |
The estimated coefficient of distance on
the volume of trade is generally found to increase rather
than decrease through time using the traditional gravity
model of trade. This distance puzzle proved robust to
several ad hoc versions of the model using data for 1962-96
for a large sample of 130 countries. The introduction of an
augmented barrier to trade function removes the paradox,
yielding a decline in the estimate of the elasticity of
trade to distance of about 11 percent over the 35-year
period for the whole sample. However, the death of distance
is shown to be largely confined to bilateral trade between
rich countries, with poor countries becoming marginalized. |
| format |
Journal Article |
| author |
Brun, Jean-Francois Carrere, Celine Guillaumont, Patrick de Melo, Jaime |
| author_facet |
Brun, Jean-Francois Carrere, Celine Guillaumont, Patrick de Melo, Jaime |
| author_sort |
Brun, Jean-Francois |
| title |
Has Distance Died? : Evidence from a Panel Gravity Model |
| title_short |
Has Distance Died? : Evidence from a Panel Gravity Model |
| title_full |
Has Distance Died? : Evidence from a Panel Gravity Model |
| title_fullStr |
Has Distance Died? : Evidence from a Panel Gravity Model |
| title_full_unstemmed |
Has Distance Died? : Evidence from a Panel Gravity Model |
| title_sort |
has distance died? : evidence from a panel gravity model |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2005/01/17747607/distance-died-evidence-panel-gravity-model http://hdl.handle.net/10986/16487 |
| _version_ |
1764433362786713600 |