A gravity model under competition

Arbeitspapier

The paper presents an alternative derivation of the gravity equation for foreign trade, which is explicitly based on monopolistic competition in the export markets and which is more general than previously in the literature. In contrast to the usual specification, our model allows for the realistic assumption of asymmetry in mutual trade flows. The model is estimated for trade in Europe, producing evidence that trade flows and barriers do, indeed, reveal strong asymmetry. We then carry out a simulation, based on the estimated model, of general equilibrium effects, through trade, of possible UK entrance into EMU.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ETLA Discussion Papers ; No. 962

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration
• Thema: Gravity model ; trade barriers ; asymmetry ; Gravitaatiomalli ; kaupan esteet ; epäsymmetria ; Gravitationsmodell ; Außenwirtschaft ; Monopolistischer Wettbewerb ; Schätzung ; Europa

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Alho, Kari E. O.
• Ereignis: Veröffentlichung
• (wer): The Research Institute of the Finnish Economy (ETLA)
• (wo): Helsinki
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/63683
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ