The gravity model specification for modeling international trade flows and free trade agreement effects: a 10-year review of empirical studies

K Kepaptsoglou, MG Karlaftis… - The open economics …, 2010 - econstor.eu
The gravity model has been extensively used in international trade research for the last 40
years because of its considerable empirical robustness and explanatory power. Since their …

Do we really know that trade agreements increase trade?

T Kohl - Review of World Economics, 2014 - Springer
This study surveys the empirical literature in which the gravity equation has been used to
study the effect of economic integration agreements (EIAs) on international trade flows. We …

On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration

SL Baier, YV Yotov, T Zylkin - Journal of International Economics, 2019 - Elsevier
We develop a novel two stage methodology that allows us to study the empirical
determinants of the ex post effects of past free trade agreements (FTAs) as well as obtain ex …

Infrastructure, geographical disadvantage, transport costs, and trade

N Limao, AJ Venables - The world bank economic review, 2001 - academic.oup.com
The authors use different data sets to investigate the dependence of transport costs on
geography and infrastructure. Infrastructure is an important determinant of transport costs …

The impact of China's one belt one road initiative on international trade in the ASEAN region

N Foo, HH Lean, R Salim - The North American Journal of Economics and …, 2020 - Elsevier
This study explores the potential effects of China's 'One Belt One Road'(OBOR) policy on
trade flows in ASEAN countries and China. We use the augmented gravity model of …

A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area

S Yang, I Martinez-Zarzoso - China Economic Review, 2014 - Elsevier
This study uses a theoretically justified gravity model of trade to examine the impact of the
ASEAN–China Free Trade Agreement (ACFTA) on exports, focusing on trade creation and …

[PDF][PDF] Controlling for heterogeneity in gravity models of trade and integration

IH Cheng, HJ Wall - 2005 - Citeseer
I-Hui Cheng and Howard J. Wall been common to instead specify the augmented model
using per capita income, which captures the same effects. 3 Whichever specification of the …

Augmented gravity model: An empirical application to Mercosur-European Union trade flows

I Martínez-Zarzoso… - Journal of applied …, 2003 - Taylor & Francis
This paper applies the gravity trade model to assess Mercosur-European Union trade, and
trade potential following the agreements reached recently between both trade blocs. The …

Comparing alternative methods to estimate gravity models of bilateral trade

E Gómez-Herrera - Empirical economics, 2013 - Springer
The gravity equation has been traditionally used to predict trade flows across countries.
However, several problems related with its empirical application still remain unsolved. The …

New measures of trade creation and trade diversion

CSP Magee - Journal of International Economics, 2008 - Elsevier
This paper estimates the effects of regional agreements on trade flows controlling for country
pair, importer-year, and exporter-year fixed effects. These fixed effects capture the …