The Missing Globalization Puzzle: Evidence of the Declining Importance of Distance
AbstractGlobalization can be characterized as the rapid increase in international trade spurred by advances in technology that have decreased the cost of trade. As costs have declined, so too, it would seem, should the estimated distance coefficient in the gravity model of bilateral trade. But a standard empirical result is that these estimated coefficients have been broadly stable, a result that might be called the “missing globalization puzzle.” In contrast to results from the literature, we find evidence of globalization reflected in the estimated coefficients on distance in both cross-section and panel data. Our estimation procedures fully incorporate the information contained in observations where bilateral trade is zero and hence do not suffer from the potential estimation bias when observations where bilateral trade is zero are arbitrarily excluded from the sample. IMF Staff Papers (2007) 54, 34–58. doi:10.1057/palgrave.imfsp.9450003
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 Palgrave Macmillan in its journal IMF Staff Papers.
Volume (Year): 54 (2007)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.