On Theories Explaining the Success of the Gravity Equation

@inproceedings{Evenett1996OnTE,
  title={On Theories Explaining the Success of the Gravity Equation},
  author={Simon J. Evenett and Walter T. Keller},
  year={1996}
}
We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity Equation. Since versions of both models can generate this prediction, we tackle the model identification problem by conditioning bilateral trade relations on factor endowment differences and the share of intra-industry trade, because only for large factor endowment differences does the… CONTINUE READING

Similar Papers

Citations

Publications citing this paper.
SHOWING 1-10 OF 274 CITATIONS

21 st Century Trade Agreements : A Data Study on Non-Tariff Barriers

VIEW 4 EXCERPTS
CITES METHODS & BACKGROUND
HIGHLY INFLUENCED

ESTIMATING TRADE FLOWS: CASE OF SOUTH AFRICA AND BRICs

VIEW 5 EXCERPTS
CITES BACKGROUND & METHODS
HIGHLY INFLUENCED

Vertical specialisation and new regionalism

VIEW 36 EXCERPTS
CITES RESULTS & BACKGROUND
HIGHLY INFLUENCED

FILTER CITATIONS BY YEAR

1998
2019

CITATION STATISTICS

  • 22 Highly Influenced Citations

  • Averaged 4 Citations per year from 2017 through 2019

References

Publications referenced by this paper.
SHOWING 1-10 OF 34 REFERENCES

CD-ROM

World Bank. World Development Indicators
  • Washington: World Bank, 2000.
  • 2000

NBER Manufacturing Productivity Database

Bartelsman, Eric, Gray, Wayne
  • http://www.nber.org
  • 2000

“ Empirical Evidence on the New Trade Theories : The Current State of Play . ” In

R Paul
  • “ Are Regional Trading Partners ‘ Natural ’ ? ” Working paper
  • 2000

Vienna: Austrian Inst

Austrian Institute for Economic Research. Competitiveness Report
  • Econ. Res. (for European Comm.), 1999.
  • 1999

Geographic Distance Data

Haveman, Jon
  • http://www.macalester.edu/
  • 1998