One of the best established empirical results in international economics is that bilateral trade decreases with distance. Although well-known, this result has not been systematically analyzed before. We examine 1467 distance effects estimated in 103 papers. Information collected on each estimate allows us to test hypotheses about the causes of variation in the estimates. Our most interesting finding is that the estimated negative impact of distance on trade rose around the middle of the century and has remained persistently high since then. This result holds even after controlling for many important differences in samples and methods.JEL classification: F10, C10.
One of the best established empirical results in international economics is that bilateral trade decreases with distance. Although well-known, this result has not been systematically analyzed before. We examine 1467 distance effects estimated in 103 papers. Information collected on each estimate allows us to test hypotheses about the causes of variation in the estimates. Our most interesting finding is that the estimated negative impact of distance on trade rose around the middle of the century and has remained persistently high since then. This result holds even after controlling for many important differences in samples and methods.JEL classification: F10, C10.
According to World Trade Organization rules, countries may adopt regulations under the Agreements on Sanitary and Phyto-Sanitary (SPS) and Technical Barriers to Trade (TBT). We analyze the structure of these measures in agricultural trade. The inventory approach suggests that European countries have among the lowest coverage ratios of all OECD countries. Using a gravity equation, we also estimate their stringency. Our results suggest that they significantly reduce developing countries' exports to OECD countries, but do not affect trade between OECD members. Furthermore, European imports are more negatively influenced by SPS and TBTs than imports of other OECD countries.
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