Cafiso, Gianluca (2007): The Geographic Space in International Trade: from Gravity to New Economic Geography.
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In this paper we discuss the foundations of two recent trade theories linked by the role that the space-dimension plays in this kind of models. The theories discussed are the Gravity Approach and the New Economic Geography. We dedicate much to the explanation of the micro-foundations of the gravity equation and to the solution of the Border Puzzle achieved in a relevant and innovative paper by Anderson and van Wincoop. Some upto-date empirical applications, which test or use Gravity and NEG relations, are discussed in order to show how much these two theories are used in empirical trade analysis.
|Item Type:||MPRA Paper|
|Original Title:||The Geographic Space in International Trade: from Gravity to New Economic Geography|
|Keywords:||Gravity, Trade Costs, Border Puzzle, Economic Geography|
|Subjects:||F - International Economics > F1 - Trade > F10 - General|
|Depositing User:||Gianluca Cafiso|
|Date Deposited:||27. Jan 2010 16:25|
|Last Modified:||12. Feb 2013 18:23|
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