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Disaggregated gravity: Benchmark estimates and stylized facts from a new database

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  • Ingo Borchert
  • Mario Larch
  • Serge Shikher
  • Yoto V. Yotov

Abstract

We use the new International Trade and Production Database for Estimation to obtain benchmark gravity estimates for an unprecedented range of 170 industries. We document differences and similarities of standard gravity variables across four broad sectors: Agriculture, Mining and Energy, Manufacturing, and Services. We test the robustness of our main estimates against some key data and estimation approaches from the related literature. The findings from these experiments confirm the robustness of our main findings and reinforce some stylized facts, while highlighting possible caveats for gravity estimation in other contexts.

Suggested Citation

  • Ingo Borchert & Mario Larch & Serge Shikher & Yoto V. Yotov, 2022. "Disaggregated gravity: Benchmark estimates and stylized facts from a new database," Review of International Economics, Wiley Blackwell, vol. 30(1), pages 113-136, February.
    • Handle: RePEc:bla:reviec:v:30:y:2022:i:1:p:113-136
    DOI: 10.1111/roie.12555
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    Cited by:

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    3. Quintieri, Beniamino & Stamato, Giovanni, 2023. "Are preferential agreements beneficial to EU trade? New evidence from the EU-South Korea treaty," Working Paper Series 2822, European Central Bank.
    4. Camille Reverdy, 2023. "Estimating the general equilibrium effects of services trade liberalization," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 493-521, May.
    5. Yoto V. Yotov, 2022. "On the role of domestic trade flows for estimating the gravity model of trade," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 526-540, July.
    6. Zhuoran Bai & Shuang Meng & Zhuang Miao & Yan Zhang, 2023. "Liberalization for services foreign direct investment and product mix adjustment: Evidence from Chinese exporting firms," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 363-388, May.
    7. Jakubik, Adam & Ruta, Michele, 2023. "Trading with friends in uncertain times," Journal of Policy Modeling, Elsevier, vol. 45(4), pages 768-780.
    8. Mario Larch & Serge Shikher & Constantinos Syropoulos & Yoto V. Yotov, 2022. "Quantifying the impact of economic sanctions on international trade in the energy and mining sectors," Economic Inquiry, Western Economic Association International, vol. 60(3), pages 1038-1063, July.
    9. Larch, Mario & Tan, Shawn & Yotov, Yoto, 2021. "A simple method to quantify the ex-ante effects of “deep” trade liberalization and “hard” trade protection," School of Economics Working Paper Series 2021-14, LeBow College of Business, Drexel University.
    10. Hanna Adam & Mario Larch & Jordi Paniagua, 2023. "Spain, Split and Talk: Quantifying Regional Independence," CESifo Working Paper Series 10742, CESifo.
    11. Amélie GUILLIN & Isabelle RABAUD & Chahir ZAKI, 2022. "Does the Depth of Trade Agreements Matter for Trade in Services? Evidence from the MENA Region," LEO Working Papers / DR LEO 2984, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    12. Yoto V. Yotov, 2021. "The Variation of Gravity within Countries (or 15 Reasons Why Gravity Should Be Estimated with Domestic Trade Flows)," CESifo Working Paper Series 9057, CESifo.
    13. Díaz-Mora, Carmen & Esteve-Pérez, Silviano & Gil-Pareja, Salvador, 2023. "A re-assessment of the heterogeneous effect of trade agreements using intra-national trade flows," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 940-951.
    14. Ingo Borchert & Mario Larch & Serge Shikher & Yoto V. Yotov, 2021. "The International Trade and Production Database for Estimation (ITPD-E)," International Economics, CEPII research center, issue 166, pages 140-166.
    15. Joanna Wolszczak-Derlacz & Yuxin Lu, 2022. "The role of the One-Belt One-Road initiative in China’s exports and global value chains," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 317-341, June.
    16. Marta Bengoa & Blanca Sanchez-Robles & Yochanan Shachmurove, 2020. "Do Trade and Investment Agreements Promote Foreign Direct Investment within Latin America? Evidence from a Structural Gravity Model," Mathematics, MDPI, vol. 8(11), pages 1-32, October.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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