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Does Heterogeneity Matter In The Context Of The Gravity Model?

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  • Laura Márquez-Ramos

    ()
    (Universitat Jaume I)

  • Inmaculada Martínez-Zarzoso

    ()
    (Universitat Jaume I)

Abstract

This paper argues that there is a differential behaviour between the richest and the poorest economies in the gravity model framework. Results show that geographical and cultural factors are more important for developing than for developed economies, and a good economic policy in developing countries is to invest in technological innovation and in transport infrastructure.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 6 (2005)
Issue (Month): 17 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-05f10089

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Keywords: developed and developing countries;

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References

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  1. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  2. Daniele Archibugi & Alberto Coco, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," CEIS Research Paper 44, Tor Vergata University, CEIS.
  3. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
  4. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
  5. Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October.
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Cited by:
  1. INSEL, Aysu & TEKCE, Mahmut, 2010. "Econometric analysis of the bilateral trade flows in the Gulf Cooperation Council countries," MPRA Paper 22130, University Library of Munich, Germany.
  2. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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