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On the Role of Distance for Bilateral Trade

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  • Peter Egger

Abstract

This study addresses the role of distance in a partial equilibrium model of bilateral trade and tests hypotheses in a large panel data-set of trade flows. The analysis obtains three implications regarding the empirical specification of trade frictions in gravity models. Two results illustrate the relevance of the approach. Copyright 2008 The Author.

Suggested Citation

  • Peter Egger, 2008. "On the Role of Distance for Bilateral Trade," The World Economy, Wiley Blackwell, vol. 31(5), pages 653-662, May.
  • Handle: RePEc:bla:worlde:v:31:y:2008:i:5:p:653-662
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    References listed on IDEAS

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    1. Gabriel J Felbermayr & Wilhelm Kohler, 2014. "Exploring the Intensive and Extensive Margins of World Trade," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 4, pages 115-148 World Scientific Publishing Co. Pte. Ltd..
    2. World Bank, 2004. "World Development Indicators 2004," World Bank Publications, The World Bank, number 13890.
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    Cited by:

    1. Gani, Azmat & Scrimgeour, Frank, 2016. "New Zealand's trade with Asia and the role of good governance," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 36-53.
    2. Maria Chiara Di Guardo & Emanuela Marrocu & Raffaele Paci, 2016. "The Concurrent Impact of Cultural, Political, and Spatial Distances on International Mergers and Acquisitions," The World Economy, Wiley Blackwell, vol. 39(6), pages 824-852, June.
    3. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    4. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 709-730, December.
    5. Gani, Azmat & Al Mawali, Nasser Rashid, 2013. "Oman's trade and opportunities of integration with the Asian economies," Economic Modelling, Elsevier, vol. 31(C), pages 766-774.
    6. Cortes, Maria, 2007. "Composition of Trade between Australia and Latin America: Gravity Model," Economics Working Papers wp07-19, School of Economics, University of Wollongong, NSW, Australia.
    7. Egger, Peter H. & Lassmann, Andrea, 2012. "The language effect in international trade: A meta-analysis," Economics Letters, Elsevier, vol. 116(2), pages 221-224.
    8. Shahbaz Nasir & Kaliappa Kalirajan, 2016. "Information and Communication Technology-Enabled Modern Services Export Performances of Asian Economies," Asian Development Review, MIT Press, vol. 33(1), pages 1-27, March.
    9. Thiemann, Franziska & Fleming, Euan M. & Mueller, Rolf A.E., 2012. "Impact of information and communication technology (ICT) on international trade in fruit and vegetables: A gravity model approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123839, International Association of Agricultural Economists.
    10. Nasir, Shahbaz & Kalirajan, Kaliappa, 2014. "Modern Services Export Performances among Emerging and Developed Asian Economies," Working Papers on Regional Economic Integration 143, Asian Development Bank.
    11. Thiemann, Franziska & Fleming, Euan M. & Mueller, Rolf A.E., 2012. "Impact of information and communication technology (ICT) on international trade in fruit and vegetables: A gravity model approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123840, International Association of Agricultural Economists.
    12. Fleming, Euan M. & Thiemann, Franziska & Mueller, Rolf A.E., 2011. "Information and Communication Technology and the Global Flow of Wine: A Gravity Model of ICT in Wine Trade," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114353, European Association of Agricultural Economists.
    13. Carlo Piccardi & Lucia Tajoli, 2015. "Are Preferential Agreements Significant for the World Trade Structure? A Network Community Analysis," Kyklos, Wiley Blackwell, vol. 68(2), pages 220-239, May.

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