Gravity and Globalization: A Re-interpretation of Old Results

  • Daniel A. Diasy
  • Published 2009

Abstract

This paper addresses the puzzling empirical result regarding the persistent, and in some cases increasing, e¤ect of distance on international trade. In particular, it shows how globalization can reconcile a decrease in transportation costs and an increase in the impact of distance on trade, which is usually estimated in the context of a gravity equation… (More)

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Cite this paper

@inproceedings{Diasy2009GravityAG, title={Gravity and Globalization: A Re-interpretation of Old Results}, author={Daniel A. Diasy}, year={2009} }