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Does Heterogeneity Matter In The Context Of The Gravity Model?

  • Laura Márquez-Ramos

    ()

    (Universitat Jaume I)

  • Inmaculada Martínez-Zarzoso

    ()

    (Universitat Jaume I)

This paper argues that there is a differential behaviour between the richest and the poorest economies in the gravity model framework. Results show that geographical and cultural factors are more important for developing than for developed economies, and a good economic policy in developing countries is to invest in technological innovation and in transport infrastructure.

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File URL: http://www.accessecon.com/pubs/EB/2005/Volume6/EB-05F10089A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 6 (2005)
Issue (Month): 17 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-05f10089
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  1. Daniele Archibugi & Alberto Coco, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," CEIS Research Paper 44, Tor Vergata University, CEIS.
  2. 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.
  3. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
  4. Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October.
  5. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
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