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Mongolia's International Trade: Impact of Its Geographical Location

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Abstract

This paper examines the influence of Mongolia's landlocked location between Russia and China on the country's international trade patterns through the use of an augmented gravity model. The results are basically consistent with the prediction of the gravity model with some unexpected results on per capita GDP and the WTO dummy. Further, this paper discusses relevant policy implications.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2011_02.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2011_02.

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Length: 21 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2011_02

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Keywords: Mongolia; International trade; Trade patterns and determinants; Geographic location; Gravity model;

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References

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  1. Hummels, D. & Levinsohn, J., 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," Working Papers 339, Research Seminar in International Economics, University of Michigan.
  2. Wang, Jiao & Ji, Andy G., 2006. "Exchange rate sensitivity of China’s bilateral trade flows," BOFIT Discussion Papers 19/2006, Bank of Finland, Institute for Economies in Transition.
  3. Baldwin, Richard, 1993. "The Potential for Trade Between the Countries of EFTA and Central and Eastern Europe," CEPR Discussion Papers 853, C.E.P.R. Discussion Papers.
  4. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  5. repec:att:wimass:9713 is not listed on IDEAS
  6. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
  7. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
  8. 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.
  9. 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.
  10. Tiiu Paas, 2000. "Gravity Approach For Modeling Trade Flows Between Estonia And The Main Trading Partners," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 4, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  11. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2006. "Trading Partners and Trading Volumes," DEGIT Conference Papers c011_022, DEGIT, Dynamics, Economic Growth, and International Trade.
  12. Chan-Hyun Sohn, 2005. "Does The Gravity Model Explain South Korea'S Trade Flows?," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 56(4), pages 417-430.
  13. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
  14. Howard J. Wall, 1999. "Using the gravity model to estimate the costs of protection," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 33-40.
  15. Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(2), pages 284-314, June.
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