'DUAL' GRAVITY: USING SPATIAL ECONOMETRICS TO CONTROL FOR MULTILATERAL RESISTANCE

被引:83
作者
Behrens, Kristian [1 ,2 ,3 ]
Ertur, Cem [4 ]
Koch, Wilfried [1 ,2 ]
机构
[1] Univ Quebec, Dept Sci Econ, Montreal, PQ H3C 3P8, Canada
[2] CIRPEE ESG UQAM, Montreal, PQ, Canada
[3] CEPR, London, England
[4] Univ Orleans, LEO, Fac Droit Econ & Gest, F-45067 Orleans, France
关键词
EXTENSIVE MARGINS; TRADE; DISTANCE; INTERDEPENDENCE; GEOGRAPHY; GROWTH;
D O I
10.1002/jae.1231
中图分类号
F [经济];
学科分类号
02 ;
摘要
We derive a quantity-based structural gravity equation system in which both trade flows and error terms are cross-sectionally correlated. This system can be estimated using techniques borrowed from the spatial econometrics literature. To illustrate our methodology, we apply it to a well-known CanadaUS trade dataset. We find that border effects between the USA and Canada are smaller than suggested by previous studies: about 7.5 for Canadian provinces and about 1.3 for US states. Hence controlling directly for cross-sectional interdependence among both trade flows and error terms reduces measured border effects by capturing multilateral resistance. Copyright (c) 2010 John Wiley & Sons, Ltd.
引用
收藏
页码:773 / 794
页数:22
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