Article ID Journal Published Year Pages File Type
5059720 Economics Letters 2012 5 Pages PDF
Abstract
► I propose a simple and intuitive solution to the distance puzzle in trade. ► To solve the puzzle, I rely on the properties of the structural gravity model. ► Globalization should be measured relative to integration within national markets. ► I offer robust evidence for steadily falling distance effects on international trade. ► I demonstrate that the gravity model is well suited to capture globalization effects.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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