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The gravity of distance: evidence from a trade embargo

Author

Listed:
  • Afnan Al-Malk
  • Jean-François Maystadt
  • Maurizio Zanardi

Abstract

On 5 June 2017, an airspace blockade was imposed on the State of Qatar by Bahrain, Saudi Arabia, United Arab Emirates (neighboring countries), and Egypt. We exploit this exogenous increase in air transportation costs toward non-blockading countries to examine the effect of increased travel distance, due to re-routing, on bilateral trade. Based on a gravity model estimated using a Poisson pseudo-maximum likelihood estimator, we find a distance elasticity of imports between −0.3 and −0.5. Overcoming the limitations of cross-sectional studies and taking advantage of this quasi-natural experiment, our findings are robust and revise downward previous estimates of the distance elasticity.

Suggested Citation

  • Afnan Al-Malk & Jean-François Maystadt & Maurizio Zanardi, 2025. "The gravity of distance: evidence from a trade embargo," Journal of Economic Geography, Oxford University Press, vol. 25(2), pages 175-189.
    • Handle: RePEc:oup:jecgeo:v:25:y:2025:i:2:p:175-189.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbae033
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    More about this item

    Keywords

    embargo; distance effect; international trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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