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Distance and the impact of ‘gravity’ help explain patterns of international trade

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  • Ananth Ramanarayanan

Abstract

United States trade with other countries declined dramatically during the recent recession, with the volumes of imports and exports each falling about 21 percent from third quarter 2008 to second quarter 2009. By comparison, real gross domestic product (GDP) contracted only 4 percent (Chart 1). A subsequent rebound in international trade flows is just as striking and has been one of the most robust indicators during the accelerating recovery.

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File URL: http://www.dallasfed.org/assets/documents/research/eclett/2011/el1107.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of Dallas in its journal Economic Letter.

Volume (Year): 6 (2011)
Issue (Month): july ()
Pages:

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Handle: RePEc:fip:feddel:y:2011:i:july:n:v.6no.7

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Keywords: International trade ; Business cycles;

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