The Pattern Of Bilateral Trade Using A Dynamic Gravity Equation
Using a dynamic gravity equation, we show that the national product differentiation model explains food and agricultural trade, while the product differentiation model explains large-scale manufacturing trade for both short- and long-run. We provide reasons of discrepancy from Head and Ries (2001) in the short-run, and illustrate the positive impacts of world income growth on bilateral trades.
|Date of creation:||2004|
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