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The Pattern Of Bilateral Trade Using A Dynamic Gravity Equation

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  • Kim, Mina
  • Cho, Guedae
  • Koo, Won W.

Abstract

Using a dynamic gravity equation, we show that the national product differentiation model explains food and agricultural trade, while the product differentiation model explains large-scale manufacturing trade for both short- and long-run. We provide reasons of discrepancy from Head and Ries (2001) in the short-run, and illustrate the positive impacts of world income growth on bilateral trades.

Suggested Citation

  • Kim, Mina & Cho, Guedae & Koo, Won W., 2004. "The Pattern Of Bilateral Trade Using A Dynamic Gravity Equation," 2004 Annual meeting, August 1-4, Denver, CO 20248, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20248
    DOI: 10.22004/ag.econ.20248
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    References listed on IDEAS

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