Trade Flows and Spatial Effects: The Gravity Model Revisited
AbstractThis article revisits the popular gravity model of trade in light of the increasingly acknowledged findings of spatial econometrics and interprets the results in view of some recent theoretical developments from the economic literature that contribute to its foundation. When the inherent spatial effects are explicitly taken into account, the magnitude of the estimated parameters changes considerably and, with it, the measures on the predicted trade flows. This result is illustrated for the case of predicted trade flows between the European Union and some of its potential members. Copyright Kluwer Academic Publishers 2001
Download InfoIf 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.
Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 12 (2001)
Issue (Month): 3 (July)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100323
spatial econometrics; trade forecasting; gravity model;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
- Carlos M. Asilis & Luis Rivera-Batiz, 1994. "Geography, Trade Patterns, and Economic Policy," IMF Working Papers 94/16, International Monetary Fund.
- Alan Deardorff, 1998.
"Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?,"
in: The Regionalization of the World Economy, pages 7-32
National Bureau of Economic Research, Inc.
- Alan V. Deardorff, 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Working Papers 5377, National Bureau of Economic Research, Inc.
- Deardorff, A.V., 1995. "Determinants of Bilateral Trade : Does Gravity Work in a Neoclassical World?," Papers 95-05, Michigan - Center for Research on Economic & Social Theory.
- Michael Freudenberg & Michaël Pajot & Lionel Fontagné, 1999.
"Le potentiel d'échanges entre l'Union européenne et les PECO. Un réexamen,"
Presses de Sciences-Po, vol. 0(6), pages 1139-1168.
- Lionel Fontagné & Michael Freudenberg & Michaël Pajot, 1999. "Le potentiel d'échanges entre l'Union européenne et les PECO. Un réexamen," Revue Économique, Programme National Persée, vol. 50(6), pages 1139-1168.
- Darren Byers & Talan IÅŸcan & Barry Lesser, 2000. "New Borders and Trade Flows: A Gravity Model Analysis of the Baltic States," Open Economies Review, Springer, vol. 11(1), pages 73-91, January.
- Simon J. Evenett & Wolfgang Keller, 1996.
"On Theories Explaining the Success of the Gravity Equation,"
9608001, EconWPA, revised 13 Jun 1997.
- Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
- Simon J. Evenett & Wolfgang Keller, 1998. "On Theories Explaining the Success of the Gravity Equation," NBER Working Papers 6529, National Bureau of Economic Research, Inc.
- Evenett, S. J. & Keller, W., 1994. "On Theories Explaining the Success of the Gravity Equation," Working papers 9713, Wisconsin Madison - Social Systems.
- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
- Spiros Bougheas & Panicos Demetriades & Edgar Morgenroth, 1996.
"Infrastructure, Transport Costs and Trade,"
Keele Department of Economics Discussion Papers (1995-2001)
96/7, Department of Economics, Keele University.
- Brada, Josef C & Mendez, Jose A, 1985. "Economic Integration among Developed, Developing and Centrally Planned Economies: A Comparative Analysis," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 549-56, November.
- Marius Brülhart & Mary J. Kelly, 1999.
"Ireland’s Trading Potential with Central and Eastern European Countries - A Gravity Study,"
The Economic and Social Review,
Economic and Social Studies, vol. 30(2), pages 159-174.
- Marius Brülhart & Mary Kelly, 1998. "Ireland's Trading Potential with Central and Eastern European Countries: A Gravity Study," Economics Technical Papers 9815, Trinity College Dublin, Department of Economics.
- Byers, D.A. & Iscan, T.B. & Lesser, B., 1998. "New Borders and Trade Flows: a Gravity Model Analysis of the Baltic States," Department of Economics at Dalhousie University working papers archive 98-04, Dalhousie, Department of Economics.
- Jeffrey A. Frankel & Shang-Jin Wei, 1998. "Regionalization of World Trade and Currencies: Economics and Politics," NBER Chapters, in: The Regionalization of the World Economy, pages 189-226 National Bureau of Economic Research, Inc.
- T J Fik & G F Mulligan, 1998. "Functional form and spatial interaction models," Environment and Planning A, Pion Ltd, London, vol. 30(8), pages 1497-1507, August.
- Edward E. Leamer, 1992. "Testing Trade Theory," NBER Working Papers 3957, National Bureau of Economic Research, Inc.
- Bolduc, Denis & Laferriere, Richard & Santarossa, Gino, 1992. "Spatial autoregressive error components in travel flow models," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 371-385, September.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- Hamilton, C.B. & Winters, L.A., 1992. "Opening Up International Trade in Eastern Europe," Papers 511, Stockholm - International Economic Studies.
- Hayakawa, Kazunobu & JI, Zheng & Obashi, Ayako, 2009. "Agglomeration versus Fragmentation:A Comparison of East Asia and Europe," IDE Discussion Papers 212, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Kiyong Keum, 2010. "Tourism flows and trade theory: a panel data analysis with the gravity model," The Annals of Regional Science, Springer, vol. 44(3), pages 541-557, June.
- Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
- LeSage, James P. & Polasek, Wolfgang, 2006.
"Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows,"
188, Institute for Advanced Studies.
- James Paul Lesage & Wolfgang Polasek, 2008. "Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows," Spatial Economic Analysis, Taylor and Francis Journals, vol. 3(2), pages 225-245.
- repec:dgr:uvatin:2011136 is not listed on IDEAS
- Sandberg, H. Mikael & Taylor, Timothy G. & Seale, James L., Jr., 2002. "CARICOM Bilateral Trade: A Preliminary Analysis Using the Gravity Model," Technical Papers 15636, University of Florida, International Agricultural Trade and Policy Center.
- Masood Gheasi & Peter Nijkamp & Piet Rietveld, 2011.
"Migration and Foreign Direct Investment: Education Matters,"
Tinbergen Institute Discussion Papers
11-136/3, Tinbergen Institute.
- Masood Gheasi & Peter Nijkamp & Piet Rietveld, 2013. "Migration and foreign direct investment: education matters," The Annals of Regional Science, Springer, vol. 51(1), pages 73-87, August.
- Ron Johnston & Les Hepple & Tony Hoare & Kelvyn Jones & Paul Plummer, 2003. "The Mistreated Model: Some Technical Comments on Porojan's Paper on 'Trade Flows and Spatial Effects'," Open Economies Review, Springer, vol. 14(1), pages 11-14, January.
- Angulo, A. M. & Mtimet, N. & Dhehibi, B. & Atwi, M. & Ben Youssef , O. & Gil, J. M. & Sai, M. B., 2011. "A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 225-239.
- Anca Carrington, 2003. "The Mistreated Model: A Reply," Open Economies Review, Springer, vol. 14(1), pages 15-17, January.
- Giuseppe Ricciardo Lamonica & Barbara Zagaglia, 2013. "The determinants of internal mobility in Italy, 1995-2006," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(16), pages 407-440, September.
- Reinhold Kosfeld & Hans-Friedrich Eckey, 2008. "Market Access, Regional Price Level and Wage Disparities: The German Case," MAGKS Papers on Economics 200814, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Minfeng Deng & George Athanasopoulos, 2009. "Modelling Australian Domestic and International Inbound Travel: a Spatial-Temporal Approach," Monash Econometrics and Business Statistics Working Papers 10/09, Monash University, Department of Econometrics and Business Statistics.
- Karel Janda & Eva Michalíková & Věra Potácelová, 2010. "Gravity and Fiscal Models of Government Support of Export Credit in the Czech Republic," Politická ekonomie, University of Economics, Prague, vol. 2010(3), pages 305-325.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.