'Dual' Gravity: Using spatial econometrics to control for multilateral resistance

Journal of Applied Econometrics

Volumn 27, Issue 5, 2012, Pages 773-794

  Behrens, Kristian ^a,b,c   Ertur, Cem ^d   Koch, Wilfried ^a,b  

^a UNIVERSITÉ DU QUÉBEC À MONTRÉAL   (Canada)

^b Logistics and Transport   (Canada)

^c CEPR   (United Kingdom)

^d UNIVERSITÉ D'ORLÉANS   (France)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84858164031     PISSN: 08837252     EISSN: 10991255     Source Type: Journal    
DOI: 10.1002/jae.1231     Document Type: Article

References (41)

1. Akerlof GA. 1997. Social distance and social decision. Econometrica 65: 1005-1027.
2. Anderson JE. 1979. A theoretical foundation for the gravity equation. American Economic Review 69: 106-116.
3. Anderson JE, van Wincoop E. 2003. Gravity with gravitas: a solution to the border puzzle. American Economic Review 93: 170-192.
4. Anderson JE, van Wincoop E. 2004. Trade costs. Journal of Economic Literature 42: 691-751.
5. Anderson MA, Smith SLS. 1999. Canadian provinces in world trade: engagement and detachment. Canadian Journal of Economics 32: 22-38.
6. Anselin L. 1988. Spatial Econometrics: Methods and Models. Kluwer: Dordrecht.
7. Anselin L. 2006. Spatial econometrics. In Palgrave Handbook of Econometrics, Vol. I: Econometric Theory, Mills TC, Patterson K (eds). Palgrave Macmillan: New York; 901-969.
8. Anselin L, Bera A. 1998. Spatial dependence in linear regression models with an introduction to spatial econometrics. In Handbook of Applied Economic Statistics, Ullah A, Giles D. (eds). Marcel Dekker: New York; 237-289.
9. Baier SL, Bergstrand JH. 2009. Bonus vetus OLS: a simple method for approximating international trade-cost effects using the gravity equation. Journal of International Economics 77: 77-85.
10. Balistreri EJ, Hillberry R. 2007. Structural estimation and the border puzzle. Journal of International Economics 72: 451-463.
11. Baltagi BH, Egger P, Pfaffermayr M. 2003. A generalized design for bilateral trade flow models. Economics Letters 80: 391-397.
12. Behrens K, Mion G, Murata Y, Südekum J. 2009. Trade, wages, and productivity. CEPR Discussion Paper #7369, Center for Economic Policy Research, London.
13. Blonigen BA, Davies RB, Naughton HT, Waddell GR. 2007. FDI in space: spatial autoregressive relationships in foreign direct investment. European Economic Review 51: 1303-1325.
14. Broda C, Weinstein D. 2006. Globalization and the gains from variety. Quarterly Journal of Economics 121: 541-585.
15. Brueckner JK. 1998. Testing for strategic interaction among local governments: the case of growth controls. Journal of Urban Economics 44: 438-467.
16. Case AC, Rosen HS, Hines JR. 1993. Budget spillovers and fiscal policy interdependence: Evidence from the states. Journal of Public Economics 52: 285-307.
17. Chaney T. 2008. Distorted gravity: the intensive and extensive margins of international trade. American Economic Review 98: 1707-1721.
18. Chudik A, Pesaran H, Tosetti E. 2010. Weak and strong cross section dependence and estimation of large panels. Econometrics Journal (forthcoming).
19. Cliff AD, Ord GK. 1981. Spatial Processes: Models and Applications. Pion: London.
20. Conley TG, Ligon E. 2002. Economic distance and cross-country spillovers. Journal of Economic Growth 7: 157-187.
21. Conley TG, Topa G. 2002. Socio-economic distance and spatial patterns in unemployment. Journal of Applied Econometrics 17: 303-327.
22. Disdier A-C, Head K. 2008. The puzzling persistence of the distance effect on bilateral trade. Review of Economics and Statistics 90: 37-48.
23. Eaton J, Kortum S. 2002. Technology, geography and trade, Econometrica 70: 1741-1779.
24. Ertur C, Koch W. 2007. Growth, technological interdependence and spatial externalities: theory and evidence. Journal of Applied Econometrics 22: 1033-1062.
25. Feenstra RC. 2004. Advanced International Trade. Princeton University Press: Princeton, NJ.
26. Felbermayr GJ, Kohler W. 2006. Exploring the intensive and extensive margins of world trade. Review of World Economics 142: 642-674.
27. Head K, Mayer T. 2002. Illusory border effects: distance mismeasurement inflates estimates of home bias in trade. CEPII Discussion Paper #2002/1.
28. Helpman E, Melitz MJ, Rubinstein Y. 2008. Estimating trade flows: trading partners and trading volumes. Quarterly Journal of Economics 123: 441-487.
29. Huang SJ. 1984. The autoregressive moving average model for spatial analysis. Australian Journal of Statistics 26: 169-178.
30. Hummels D. 2001. Towards a geography of trade costs. Mimeo, Krannert School of Management, Purdue University, West Lafayette, IN.
31. Kelejian HH, Prucha IR. 1998. A generalized spatial two-stage least square procedure for estimating a spatial autoregressive model with autoregressive disturbances. Journal of Real Estate Finance and Economics 17: 99-121.
32. Kelejian HH, Prucha IR. 2009. Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances. Journal of Econometrics 157: 53-67.
33. Lee L-F. 2004. Asymptotic distributions of quasi-maximum likelihood estimators for spatial autoregressive models. Econometrica 72: 1899-1925.
34. LeSage JP, Pace RK. 2008. Spatial econometric modeling of origin-destination flows. Journal of Regional Science 48: 941-967.
35. LeSage JP, Pace RK. 2009. Introduction to Spatial Econometrics. Chapman & Hall/CRC: New York.
36. McCallum JM. 1995. National borders matter: Canada-U.S. regional trade patterns. American Economic Review 85: 615-623.
37. Melitz MJ. 2003. The impacts of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71: 1695-1725.
38. Melitz MJ, Ottaviano GIP. 2008. Market size, trade, and productivity. Review of Economic Studies 75: 295-316.
39. Pesaran H, Tosetti E. 2010. Large panels with spatial correlation and common factors. CESifo Working Paper No. 2103, September 2007, revised January 2010.
40. Pinkse J, Slade M, Brett C. 2002. Spatial price competition: a semiparametric approach. Econometrica 70: 1111-1153.
41. Redding S, Venables AJ. 2004. Economic geography and international inequality. Journal of International Economics 62: 53-82.