Journal ArticleDOI
Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation
TLDR
Using a Taylor-series expansion, this article solved a simple reduced-form gravity equation revealing a transparent theoretical relationship among bilateral trade flows, incomes, and trade costs, based upon the model in Anderson and van Wincoop.About:
This article is published in Journal of International Economics.The article was published on 2009-02-01. It has received 648 citations till now. The article focuses on the topics: Gravity model of trade.read more
Citations
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Book ChapterDOI
Gravity Equations: Workhorse,Toolkit, and Cookbook
TL;DR: In this article, the estimation and interpretation of gravity equations for bilateral trade is discussed, and several theory-consistent estimation methods are presented. But the authors argue against sole reliance on any one method and instead advocate a toolkit approach.
Journal ArticleDOI
Estimates of the Trade and Welfare Effects of NAFTA
Lorenzo Caliendo,Fernando Parro +1 more
TL;DR: The authors decompose the effects of NAFTA and find that 93% of Mexico's, 58% of Canada's and 55% of the United States' trade effects can be attributed to NAFTA's tariff reductions.
ReportDOI
The Gravity Model
TL;DR: Gravity has long been one of the most successful empirical models in economics as discussed by the authors, and incorporating deeper theoretical foundations of gravity into recent practice has led to a richer and more accurate estimation and interpretation of the spatial relations described by gravity.
Journal ArticleDOI
Estimates of the Trade and Welfare Effects of NAFTA
Lorenzo Caliendo,Fernando Parro +1 more
TL;DR: In this paper, the authors use a Ricardian model to quantify the trade and welfare effects from tariff changes and propose a new method to estimate sectoral trade elasticities consistent with any trade model that delivers a multiplicative gravity equation.
Journal ArticleDOI
Export Performance and Trade Facilitation Reform : Hard and Soft Infrastructure
TL;DR: In this article, the authors estimate the impact of aggregate indicators of "soft" and "hard" infrastructure on the export performance of developing countries and derive four new indicators for more than 100 countries over the period 2004-07.
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Posted Content
Gravity with Gravitas: A Solution to the Border Puzzle
TL;DR: This article showed that the gravity model usually estimated does not correspond to the theory behind it and showed that national borders reduce trade between the US and Canada by about 44% while reducing trade among other industrialized countries by about 30%.
Journal ArticleDOI
Gravity with Gravitas: A Solution to the Border Puzzle
TL;DR: In this article, a method that consistently and efficiently estimates a theoretical gravity equation and correctly calculates the comparative statics of trade frictions was developed to solve the famous McCallum border puzzle.
Journal ArticleDOI
The Log of Gravity
TL;DR: In this paper, the gravity equation for trade was used to provide new estimates of this equation, and significant differences between the estimated estimator and those obtained with the traditional method were found.
Journal ArticleDOI
Technology, Geography, and Trade
Jonathan Eaton,Samuel Kortum +1 more
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.