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Potentiels de commerce entre économies hétérogènes : un petit mode d'emploi des modèles de gravité

Author

Listed:
  • Lionel Fontagné
  • Michaël Pajot
  • Jean-Michel Pasteels

Abstract

Two opposite forces determine the intensity of bilateral trade between countries: an attractive force (country size and income) and a repulsive force (distance and other barriers to trade). Building on a now well-established theoretical basis and minimum data requirements, gravity equations ? which combine the above variables ? have become one of the most popular tools for analysing international trade. And calculating trade potential is certainly their most widely used application: a gravity equation is estimated and then used for a simulation. This paper examines the problems associated with this methodology and offers original solutions, focusing particularly on choice of estimation sample. A gravity model estimated for 75 heterogeneous countries trading in 14 sectors covering 261 industries is used to illustrate this approach.

Suggested Citation

  • Lionel Fontagné & Michaël Pajot & Jean-Michel Pasteels, 2002. "Potentiels de commerce entre économies hétérogènes : un petit mode d'emploi des modèles de gravité," Economie & Prévision, La Documentation Française, vol. 0(1), pages 115-139.
  • Handle: RePEc:cai:ecoldc:ecop_152_0115
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    Cited by:

    1. Bouë & t, Antoine, 2006. "What can the poor expect from trade liberalization? opening the "black box" of trade modeling," MTID discussion papers 93, International Food Policy Research Institute (IFPRI).
    2. Souleymane Coulibaly & Lionel Fontagné, 2006. "South--South Trade: Geography Matters," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 313-341, June.
    3. Ahcar, Jaime, 2018. "Colombia’s potential for trade with the European Union and other major global markets," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

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