There Goes Gravity: eBay and the Death of Distance

@article{Lendle2016ThereGG,
  title={There Goes Gravity: eBay and the Death of Distance},
  author={A. Lendle and M. Olarreaga and Simon A. B. Schropp and Pierre‐Louis V{\'e}zina},
  journal={International Trade eJournal},
  year={2016}
}
We compare the effect of geographic distance on eBay and total international trade flows. We consider the same 61 countries and basket of goods for both types of transactions. We find the effect of distance to be on average 65% smaller on eBay. We argue this difference is due to a reduction in search costs; it increases with product differentiation and is higher when trade partners speak different languages, when corruption in the exporting country is high and when uncertainty avoidance is high… Expand
Economic Geography and Trade
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