Does the Internet Defy the Law of Gravity?

@article{Blum2006DoesTI,
  title={Does the Internet Defy the Law of Gravity?},
  author={Bernardo S. Blum and Avi Goldfarb},
  journal={Information Systems \& Economics},
  year={2006}
}
The Internet and Trade
This paper aims to assess the effects of internet usage on bilateral trade volumes. Increasingly companies are conducting business online. If the effect of an increased internet usage on trade is
The Role of Religion in Online Pro-social Lending
TLDR
The findings speak to the important frictions associated with religious differences in individual philanthropy, and they point to the role of government policy around religious tolerance as a determinant of citizens’ philanthropic behavior.
Distance(S) and the Volatility of International Trade(S)
Does distance matter for the volatility of international real and financial transactions? We show that it does, in addition to its well-established relevance for the level of trade. A simple model of
Worldwide Gravity in Online Commerce
We analyse geographical patterns of cross-country Internet transactions using proprietary data from Google. Spanning all countries from 2008-2011 and over 10 billion online transactions, the data
There Goes Gravity: How Ebay Reduces Trade Costs
This paper compares the impact of distance, a standard proxy for trade costs, on eBay and offline international trade flows. It considers the same set of 62 countries and the same basket of goods for
The Internet and Trade An assessment of the effects of internet usage on trade volumes
This paper aims to assess the effects of internet usage on bilateral trade volumes. Increasingly companies are conducting business online. If the effect of an increased internet usage on trade is
The Internet and International Trade in Goods
Previous studies by Freund & Weinhold (2004) and others have highlighted the trade promoting effect of the Internet. However, recent developments in structural gravity modelling emphasise the
The Geography of Trade in Online Transactions: Evidence from eBay and MercadoLibre
We analyze geographic patterns of trade between individuals using transactions data from eBay and MercadoLibre, two large online auction sites. We find that distance continues to be an important
Does Country-of-Origin Marketing Matter?
Firms often display product information on their front-of-package labels, with some firms going as far as to make deceptive claims. We study the impact of the “Made in USA�? claim - a disclosure not
GRAVITY AND BORDERS IN ONLINE COMMERCE
We use a proprietary data set from Google to study the geograph- ical patterns of cross-country transactions done over the internet. Covering online transactions over the course of four years, the
...
...

References

SHOWING 1-10 OF 30 REFERENCES
On the Effect of the Internet on International Trade
The Internet stimulates trade. Using a gravity equation of trade among 56 countries, we find no evidence of an effect of the Internet on total trade flows in 1995 and only weak evidence of an effect
The Economic Geography of the Internet Age
This paper combines the perspective of an international economist with that of an economic geographer to reflect on how and to what extent the Internet will affect the location of economic activity.
Trade Costs
This paper surveys the measurement of trade costs --- what we know, and what we don't know but may usefully attempt to find out. Partial and incomplete data on direct measures of costs go together
Can FTAA suspend the law of gravity and give the Americas higher growth and better income distributions ?
1. The export sector is the fundamental source of both wealth and inequality: You are what you export. Exporting manufactures has been essential for high incomes and low levels of inequality.
The Puzzling Persistence of the Distance Effect on Bilateral Trade
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.
Toward a Geography of Trade Costs
What are the barriers that separate nations? While recent work provides intriguing clues, we have remarkably little concrete evidence as to the nature, size, and shape of barriers. This paper offers
Product quality and the direction of trade
Using the gravity equation to differentiate among alternative theories of trade: another look
This study compares two alternative approaches–the traditional ordinary least square (OLS) and the Poisson Quasi Maximum Likelihood (PQML) procedures–to estimation of the home market effects for the
Information rules - a strategic guide to the network economy
TLDR
Information Rules will help business leaders and policy makers - from executives in the entertainment, publishing, hardware, and software industries to lawyers, finance professionals, and writers -- make intelligent decisions about their information assets.
Estimating Discrete-Choice Models of Product Differentiation
This article considers the problem of "supply-and-demand" analysis on a cross section of oligopoly markets with differentiated products. The primary methodology is to assume that demand can be
...
...