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Explaining the Volume of North-South Trade in Ireland - A Gravity Model Approach

Author

Listed:
  • Emla Fitzsimons

    (University College Dublin)

  • Vincent Hogan

    (University College Dublin)

  • J. Peter Neary

    (University College Dublin)

Abstract

We address the question of whether the volume of manufacturing trade between Northern Ireland and the Republic of Ireland is more or less than might be expected in the light of international experience. We estimate a gravity equation for bilateral manufacturing trade between 28 developed countries from 1970 to 1992. Using the results as benchmark, we find that North-South trade in Ireland is greater rather than less than might be expected. The finding is robust with respect to a wide range of alternative specifications and alternative ways of measuring the key variables.

Suggested Citation

  • Emla Fitzsimons & Vincent Hogan & J. Peter Neary, 1999. "Explaining the Volume of North-South Trade in Ireland - A Gravity Model Approach," The Economic and Social Review, Economic and Social Studies, vol. 30(4), pages 381-401.
  • Handle: RePEc:eso:journl:v:30:y:1999:i:4:p:381-401
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    References listed on IDEAS

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    1. Elhanan Helpman, 1999. "The Structure of Foreign Trade," Journal of Economic Perspectives, American Economic Association, pages 121-144.
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    6. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    7. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, pages 615-623.
    8. 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.
    9. Jeffrey A. Frankel & Ernesto Stein & Shang-Jin Wei, 1998. "Continental Trading Blocs: Are They Natural or Supernatural?," NBER Chapters,in: The Regionalization of the World Economy, pages 91-120 National Bureau of Economic Research, Inc.
    10. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, pages 143-153.
    11. Robert C. Feenstra & Robert E. Lipsey & Harry P. Bowen, 1997. "World Trade Flows, 1970-1992, with Production and Tariff Data," NBER Working Papers 5910, National Bureau of Economic Research, Inc.
    12. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, pages 62-81.
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    Citations

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    Cited by:

    1. Costa-i-Font, Joan, 2010. "Regional single currency effects on bilateral trade with the European Union," LSE Research Online Documents on Economics 53292, London School of Economics and Political Science, LSE Library.
    2. Joan Costa-i-Font, 2010. "Regional Single Currency Effects on Bilateral Trade with the European Union," LEQS – LSE 'Europe in Question' Discussion Paper Series 26, European Institute, LSE.
    3. Johan Fourie & María Santana-Gallego, 2013. "The determinants of African tourism," Development Southern Africa, Taylor & Francis Journals, pages 347-366.
    4. Richard Pomfret, 2005. "Sequencing Trade and Monetary Integration," Others 0502004, EconWPA.
    5. Kristian Giesen & Jens Suedekum, 2012. "The Size Distribution across all "Cities": A Unifying Approach," CESifo Working Paper Series 3730, CESifo Group Munich.
    6. FAÍÑA J.Andrés & LÓPEZ-RODRÍGUEZ Jesus, "undated". "Population Potentials and Development Levels: Empirical Findings in the European Union," EcoMod2003 330700050, EcoMod.
    7. Pomfret, Richard, 2005. "Sequencing trade and monetary integration: issues and application to Asia," Journal of Asian Economics, Elsevier, pages 105-124.
    8. Lan, Jun & Malik, Arunima & Lenzen, Manfred & McBain, Darian & Kanemoto, Keiichiro, 2016. "A structural decomposition analysis of global energy footprints," Applied Energy, Elsevier, pages 436-451.
    9. Narayan, Seema & Nguyen, Tri Tung, 2016. "Does the trade gravity model depend on trading partners? Some evidence from Vietnam and her 54 trading partners," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 220-237.
    10. Richard Pomfret, 2003. "Formation and Dissolution of Monetary Unions: Evidence from Europe, and Lessons for Elsewhere," School of Economics Working Papers 2003-03, University of Adelaide, School of Economics.
    11. Thi Hanh Vu, 2013. "International Export Flows of Vietnam :A Gravity Model Approach," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, pages 83-108.
    12. Hanh Vu Thi, 2015. "Essays on the Export Performance of Vietnam/Essais sur la Performance à l'Exportation du Vietnam," ULB Institutional Repository 2013/216765, ULB -- Universite Libre de Bruxelles.
    13. Johan Fourie & Maria Santana-Gallego, 2012. "Ethnic Reunion and Cultural Affinity," Working Papers 293, Economic Research Southern Africa.
    14. Christie Smith, 2002. "Currency unions and gravity models revisited," Reserve Bank of New Zealand Discussion Paper Series DP2002/07, Reserve Bank of New Zealand.
    15. Joan Costa-i-Font, 2010. "Regional Single Currency Effects on Bilateral Trade with the European Union," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 6, London School of Economics / European Institute.
    16. repec:eee:touman:v:36:y:2013:i:c:p:411-420 is not listed on IDEAS
    17. Pomfret, Richard, 2005. "Sequencing trade and monetary integration: issues and application to Asia," Journal of Asian Economics, Elsevier, pages 105-124.
    18. Keith Walsh, 2006. "Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade," The Institute for International Integration Studies Discussion Paper Series iiisdp183, IIIS.
    19. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, pages 421-473.
    20. Billen, Dieter & Garcia, Maria Melody & Khasanova, Nelli, 2005. "Is the effect of exchange rate volatility on trade more pronounced in Latin America than in Asia?," Kiel Advanced Studies Working Papers 434, Kiel Institute for the World Economy (IfW).
    21. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, pages 421-473.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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