IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/45550.html
   My bibliography  Save this paper

Gravity Modeling: International Trade And R&D

Author

Listed:
  • Josheski, Dushko
  • Fotov, Risto

Abstract

In this paper issue of gravity modeling in international trade has been investigated. Standard gravity equation augmented with other variables to control for transportation cost, whether trade partners are neighbors and whether country is landlocked, or countries participants in trade have had colonial history together. Also in our model we control whether traded commodities are homogenous, differentiated or high tech, as well referenced. Variable to denote technology are: TAI index, which stands for technological achievement index, also variables for creation and diffusion of technology, as measured by the number of patents from the residents and royalty and license fees receipts, by the foreign citizens. Results are as expected and the show that trade is highly dependent on the exporters and importers levels of technology.

Suggested Citation

  • Josheski, Dushko & Fotov, Risto, 2013. "Gravity Modeling: International Trade And R&D," MPRA Paper 45550, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:45550
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/45550/1/MPRA_paper_45550.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
    2. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    3. Thursby, Jerry G & Thursby, Marie C, 1987. "Bilateral Trade Flows, the Linder Hypothesis, and Exchange Risk," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 488-495, August.
    4. Jacob A. Bikker, 1987. "An International Trade Flow Model with Substitution: An Extension of the Gravity Model," Kyklos, Wiley Blackwell, vol. 40(3), pages 315-337, August.
    5. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cuauhtémoc Calderón Villarreal & Sarahí Sánchez León & Leticia Hernández Bielma, 2018. "The commercial opening and its impact on income in North America: Benefit or regression?," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 23-24, Octubre-D.
    2. Cuauhtémoc Calderón Villarreal & Sarahí Sánchez León & Leticia Hernández Bielma, 2018. "La apertura comercial y su impacto en el ingreso en Norteamérica: ¿beneficio o retroceso?," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 21-22, Octubre-D.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Josheski, Dushko & Fotov, Risto, 2013. "Gravity Modeling: International Trade and Innovations," EconStor Preprints 71060, ZBW - Leibniz Information Centre for Economics.
    2. Peter Egger, 2000. "Teilprojekt 4: Bilaterale Wirtschaftsbeziehungen zwischen der EU und ausgewählten mittel- und osteuropäischen Ländern (MOEL): Entwicklungen der letzten Jahre und Versuch einer Prognose," WIFO Studies, WIFO, number 19262, April.
    3. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers CIE 31, Paderborn University, CIE Center for International Economics.
    4. Gilroy B. Michael & Lukas Elmar & Heimann Christian, 2013. "Technologiestandort Deutschland und internationale Wissensspillover / Technology Site Germany and International Knowledge Spillovers: Welchen Einfluss nehmen ausländische MNU auf deutsche Exporte? / W," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(5-6), pages 575-599, October.
    5. Thomas L. Vollrath & Mark J. Gehlhar & Charles B. Hallahan, 2009. "Bilateral Import Protection, Free Trade Agreements, and Other Factors Influencing Trade Flows in Agriculture and Clothing," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 298-317, June.
    6. Joras Ferwerda & Mark Kattenberg & Han-Hsin Chang & Brigitte Unger & Loek Groot & Jacob A. Bikker, 2013. "Gravity models of trade-based money laundering," Applied Economics, Taylor & Francis Journals, vol. 45(22), pages 3170-3182, August.
    7. Arjan Lejour & Vladimir Solanic & Paul Tang, 2009. "EU Accession and Income Growth: An Empirical Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 127-144, May.
    8. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
    9. Fock, Achim & von Ledebur, Oliver, 1998. "Struktur und Potentiale des Agraraußenhandels Mittel- und Osteuropas," IAMO Discussion Papers 14, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    10. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 613-646.
    11. Juliette Milgram, 2003. "Quantitative Restrictions on Clothing Imports: Impact and Determinants of the Common Trade Policy Towards Developing Countries," Economic Working Papers at Centro de Estudios Andaluces E2003/04, Centro de Estudios Andaluces.
    12. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    13. Koo, Won W. & Taylor, Richard D. & Karemera, David, 1992. "Determinants of Red Meat Trade Flows," Agricultural Economics Reports 23448, North Dakota State University, Department of Agribusiness and Applied Economics.
    14. Parker Elliott, 2020. "Migration Patterns in Eastern Europe and the World: A Gravity Approach," South East European Journal of Economics and Business, Sciendo, vol. 15(1), pages 66-79, June.
    15. Cox, W. Michael & Ruffin, Roy J., 1998. "Country-bashing tariffs: Do bilateral trade deficits matter?," Journal of International Economics, Elsevier, vol. 46(1), pages 61-72, October.
    16. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    17. Andres Faiña & Jesus Lopez-Rodríguez, 2003. "Population Potentials and Development Levels: Empirical Findings in the European Union," ERSA conference papers ersa03p30, European Regional Science Association.
    18. J.A. Bikker, 2009. "An extended gravity model with substitution applied to international trade," Working Papers 09-17, Utrecht School of Economics.
    19. Agnieszka Gehringer & Inmaculada Martinez-Zarzoso & Felicitas Nowak.Lehmann Danziger, 2013. "The Determinants of Total Factor Productivity in the EU: Insights from Sectoral Data and Common Dynamic Processes," EcoMod2013 5343, EcoMod.
    20. Moses H. Lubinga & Barnabas Kiiza, 2013. "Exchange Rate Uncertainty and Bilateral Trade Flows: Insights from Uganda," Business and Economic Research, Macrothink Institute, vol. 3(1), pages 227-239, June.

    More about this item

    Keywords

    Key words: bilateral trade; gravity model; R&D; OLS; PPML;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:45550. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.