Border effects and the gravity equation: Consistent methods for estimation

Scottish Journal of Political Economy

Volumn 49, Issue 5, 2002, Pages 491-506

  Feenstra, Robert C ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ESTIMATION METHOD; GRAVITY; INTERNATIONAL TRADE; METHODOLOGY; TRADE RELATIONS;

CANADA; UNITED STATES;

EID: 0042178308     PISSN: 00369292     EISSN: None     Source Type: Journal    
DOI: 10.1111/1467-9485.00244     Document Type: Article

References (22)

1. ANDERSON, J. A. (1979). A theoretical foundation for the gravity equation. American Economic Review, 69, pp. 106-16.
2. ANDERSON, J. A. and VAN WINCOOP, E. (2001). Gravity with gravitas: a solution to the border puzzle. NBER Working Paper no. 9079.
3. ENGEL, C. and ROGERS, J. H. (1996). How wide is the border. American Economic Review, 86, 5, December, pp. 1112-25. Reprinted in E. E. Leamer (ed.) 2001, International Economics. New York: Worth Publishers, pp. 233-53.
4. HANSON, G. H. (1998). Market potential, increasing returns, and geographic concentration. NBER Working Paper No.6429.
5. HARRIGAN, J. (1996). Openness to trade in manufactures in the OECD. Journal of International Economics, February, 40, 1/2, pp. 23-39.
6. HEAD, K. and MAYER, T. (2002). Illusory border effects: distance mismeasurement inflates estimate of home bias in trade. University of British Columbia and University of Paris, manuscript.
7. HELLIWELL, J. F. and VERDIER, G. (2001). Measuring internal trade distances: a new method applied to estimate provincial border effects in Canada. Canadian Journal of Economics, 34, 4.
8. HELPMAN, E. (1987). Imperfect competition and international trade: evidence from fourteen industrial countries. Journal of the Japanese and International Economies, 1, pp. 62-81.
9. HUMMELS, D. (1999). Towards a geography of trade costs. Purdue University, manuscript.
10. KRUGMAN, P. R. and VENABLES, A. J. (1995). Globalization and the inequality of nations. Quarterly Journal of Economics, 110, 4, November, pp. 857-80.
11. KRUGMAN, P. R. (1980). Scale economies, product differentiation, and the pattern of trade. American Economic Review, 70, December, pp. 950-59.
12. KRUGMAN, P. R. (1981). Intra-industry specialization and the gains from trade. Journal of Political Economy. 89, pp. 959-73.
13. OBSTFELD, M. and ROGOFF, K. (2001). The six major puzzles in international macroeconomics: is there a common cause?. In B. S. Bernanke and K. Rogoff (eds.), NBER Macroeconomics Annual. Cambridge: MIT Press, pp. 339-89.
14. REDDING, S. (2002). Specialization dynamics. Journal of International Economics. forthcoming.
15. REDDING, S. and VENABLES, A. J. (2000). Economic geography and international inequality. Center for Economic Policy Research. Discussion Paper no. 2568.
16. ROSE, A. K. and VAN WINCOOP, E. (2001). National Monday as a barrier to international trade: the real case for currency union. American Economic Review, 91, 2, May, pp. 386-90.
17. SAMUELSON, P. A. (1952). The transfer problem and transport costs: the terms of trade when impediments are absent. Economic Journal, 62, pp. 278-304.
18. TINBERGEN, J. (1962). Shaping the World Economy. New York: The Twentieth Century Fund.
19. WEI, S.-J. (1996). Intra-national versus international trade: how stubborn are nations in global integration? NBER Working Paper no. 5531.
20. WEI, S.-J. (1998). Why does China attract so little foreign investment? Harvard Press.
21. WOLF, H. C. (1997). Patterns of intra- and inter-state trade. NBER Working Paper no. 5939.
22. WOLF, H. C. (2000). Intranational home bias in trade. Review of Economics and Statistics, 82. 4, pp. 555-63.