Advanced Search
MyIDEAS: Login

Sensitivity of international blocs´ trade effect to alternative specifications of the gravity equation

Contents:

Author Info

Registered author(s):

    Abstract

    There are so many versions of the gravity model in the international trade literature that their results on trade effects inevitably vary even for the same international blocs. This paper evaluates these alternative specifications, and compares the resulting trade effects. The results show that there is considerable sensitivity to the specification of the gravity model used. Therefore, it is important to use the proper specification to accurately measure the trade effects. This paper suggests that removing restrictions on the parameters of the model with the introduction of year, exporter, importer, and bilateral effects is necessary to properly specify the model. In particular, factors included in the augmented model, especially monetary and spatial variables, are significant. An analysis of the resulting model also shows that international blocs effect on trade vary across blocs by the level of integration, the degree of their implementation, and their sectoral coverage.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ucema.edu.ar/publicaciones/download/volume10/kandogan.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

    Volume (Year): X (2007)
    Issue (Month): (November)
    Pages: 337-360

    as in new window
    Handle: RePEc:cem:jaecon:v:10:y:2007:n:2:p:337-360

    Contact details of provider:
    Postal: Av. Córdoba 374, (C1054AAP) Capital Federal
    Phone: (5411) 6314-3000
    Fax: (5411) 4314-1654
    Email:
    Web page: http://www.cema.edu.ar/publicaciones/jae.html
    More information through EDIRC

    Related research

    Keywords: gravity models; trade agreements; international organizations; blocs;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cem:jaecon:v:10:y:2007:n:2:p:337-360

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.