The Missing Globalization Puzzle /

The failure of declining trade-related costs to be reflected in estimates of the standard gravity model of bilateral trade might be called the "missing globalization puzzle." This puzzle is most apparent in the estimated distance coefficients found in the literature, which show no evidence...

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Bibliografski detalji
Glavni autor: Bhavnani, Rikhil
Daljnji autori: Coe, David, Subramanian, Arvind, Tamirisa, Natalia
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2002.
Serija:IMF Working Papers; Working Paper ; No. 2002/171
Online pristup:Full text available on IMF
Opis
Sažetak:The failure of declining trade-related costs to be reflected in estimates of the standard gravity model of bilateral trade might be called the "missing globalization puzzle." This puzzle is most apparent in the estimated distance coefficients found in the literature, which show no evidence of declining in absolute value over time. In contrast, we find evidence of globalization, on both cross-section and panel data, reflected in a variety of measures of geography. Our estimation procedure is consistent with recent theoretical developments that emphasize the importance of relative costs for determining bilateral trade patterns. But the main reason our findings differ from previous studies is our nonlinear specification, which has a number of advantages over the standard log-linear specification.
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Opis:1 online resource (30 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students