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The view from space: Theory-based time-varying distances in the gravity model

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  • Hinz, Julian

Abstract

I compute distances used in the gravity model of international trade that improve the existing measures along multiple lines and help remedy the border puzzle by up to 50%. I derive a trade cost aggregation that is agnostic to the underlying gravity framework while taking into account the economic geography of countries. Using this method I compute bilateral and internal country distances, making use of nightlight satellite imagery for information on the economic geography of countries.

Suggested Citation

  • Hinz, Julian, 2017. "The view from space: Theory-based time-varying distances in the gravity model," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168270, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168270
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    File URL: https://www.econstor.eu/bitstream/10419/168270/1/VfS-2017-pid-3511.pdf
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    References listed on IDEAS

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    Cited by:

    1. Julian Hinz & Elsa Leromain, 2016. "Politics of Global Value Chains," Working Papers 1026, Economic Research Forum, revised Jul 2016.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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