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GTAP Resource #2624

"The Puzzling Persistence of the Distance Effect on Bilateral Trade"
by Disdier, Anne-Célia and Keith Head

One of the best established empirical results in international economics is that bilateral trade decreases with distance. Although well-known, this result has not been systematically analyzed before. We examine 1467 distance effects estimated in 103 papers. Information collected on each estimate allows us to test hypotheses about the causes of variation in the estimates. Our most interesting finding is that the estimated negative impact of distance on trade rose around the middle of the century and has remained persistently high since then. This result holds even after controlling for many important differences in samples and methods.

Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Review of Economics and Statistics; Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Version: 90(1)
Created: Disdier, A. (4/8/2008)
Updated: Disdier, A. (4/8/2008)
Visits: 1,538
No keywords have been specified.

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