A New Interpretation of the Distance Puzzle Based on Geographic Neutrality

Arribas, Iván; Pérez, Francisco Torres; Tortosa‐Ausina, Emili

doi:10.1111/j.1944-8287.2011.01120.x

Cited by 16 publications

(10 citation statements)

References 79 publications

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“…These costs vary with the distances to different countries. The results in Arribas and Pérez (2011) indicate that the importance of distance has been increasing until the mid-1990s but has since returned to the levels of 30 years ago. Therefore, the role of distance they claim, on average, still exists.…”

Section: Outward Fdi Substitutes Exportsmentioning

confidence: 70%

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A pendulum gravity model of outward FDI and export

Liu

Wang

et al. 2016

International Business Review

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A B S T R A C TThe paper proposes a pendulum gravity model of outward FDI and export. Outward FDI and export can be complementary or substitute, depending on the development stages of outward FDI. The development of outward FDI is accompanied by advancements in productivity, technology and favorable transformations in factor endowment differences, which can be reflected in the ratio of export to outward FDI. At early stages of outward FDI undertakings, the ratio of export to outward FDI is greater or much greater than the world's average, outward FDI and export are conjectured to be complementary with our analytical framework. As outward FDI matures, the pendulum swings to the other side, i.e., the ratio of export to outward FDI becomes smaller than the world's average. Outward FDI and export turn into substitute then. Empirical results and findings from examining two panel data sets support our conjecture and the proposed model, which integrate the two seemingly opposing sets of literature.

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Section: Outward Fdi Substitutes Exportsmentioning

confidence: 70%

“…N.A. Arribas and Pérez (2011) United States and 58 countries Buckley and Pearce (1979) Firm level. N.A.…”

Section: Outward Fdi Substitutes Exportsmentioning

confidence: 99%

A pendulum gravity model of outward FDI and export

Liu

Wang

et al. 2016

International Business Review

View full text Add to dashboard Cite

show abstract

“…Also, several studies show that the magnitude of the distance effect on trade is influenced by different factors such as, national economic and financial development levels (Becker & Greenberg, ; Huang, ), landlockness (Behar & Venables, ; Clark, Dollar, & Micco, ; Limão & Venables, 2001;), Information and Communication Technology (ICT) use (Freund & Weinhold, ; Choi, ), and national socio‐economic factors (Huang, ). Arribas, Perez, and Tortosa‐Ausina () show that the importance of the geographic distance for international trade varies significantly across countries. They find significant international variations in the discrepancies between distance‐corrected and distance‐uncorrected trade‐integration indicators.…”

Section: Introductionmentioning

confidence: 99%

On the Magnitude of the Geographic Distance Effect on Primary Agricultural and Processed Food Trade

Ghazalian

2014

Agribusiness

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The empirical trade literature regularly emphasizes the essential role of the geographic distance in determining the levels and patterns of international trade. This paper examines the diversities in the magnitude of the geographic distance effects on primary agricultural trade and on processed food trade between OECD countries. The empirical results from different specifications of the gravity model reveal the existence of significant variations in the magnitude of the distance effects on primary agricultural trade and on processed food trade over time and through economic, geo-economic, and socio-economic characteristics of the exporting and importing countries. These findings imply that disregarding the variations through the distance effect by relying on overall estimates would adversely affect the design of trade policies, and would limit the understanding of trade patterns. C 2014 Wiley Periodicals, Inc.

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“…In this respect, it is important to bear in mind the explanation of the distance puzzle given inArribas et al (2011) from the construction of international trade integration indicators; the authors find that the role of distance in bilateral trade, on average, still matters despite the reductions in the cost of trade, although it varies across countries.…”

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confidence: 99%

International automotive production networks: how the web comes together

Blázquez

González‐Díaz

2015

J Econ Interact Coord

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Los documentos de trabajo del Ivie ofrecen un avance de los resultados de las investigaciones económicas en curso, con objeto de generar un proceso de discusión previo a su remisión a las revistas científicas. Al publicar este documento de trabajo, el Ivie no asume responsabilidad sobre su contenido.Ivie working papers offer in advance the results of economic research under way in order to encourage a discussion process before sending them to scientific journals for their final publication. Ivie's decision to publish this working paper does not imply any responsibility for its content.La Serie EC, coordinada por Matilde Mas, está orientada a la aplicación de distintos instrumentos de análisis al estudio de problemas económicos concretos.Coordinated by Matilde Mas, the EC Series mainly includes applications of different analytical tools to the study of specific economic problems.Todos los documentos de trabajo están disponibles de forma gratuita en la web del Ivie http://www.ivie.es, así como las instrucciones para los autores que desean publicar en nuestras series.Working papers can be downloaded free of charge from the Ivie website AbstractThis paper aims to contribute to the literature on New Economic Geography by providing empirical evidence for the connections between new trade theory and the spatial distribution of economic activities. To do this, we apply Social Network Analysis specifically to the World Automotive Trade Network. We explore the structural features of the auto network for the years 1996 and 2009 using data on trade flows for 172 countries. Our findings suggest that the auto network has become denser, more extensive and more integrated over time, depicting a centerperiphery structure in which regional clusters play a prominent role. In this configuration, strong agglomeration forces generated by companies' desire for large and rich market access with minimum transportation costs are balanced by the search for new high-potential markets.

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A New Interpretation of the Distance Puzzle Based on Geographic Neutrality

Abstract: One of the most remarkable features of globalization is the fact that advances in technol-

Cited by 16 publications

References 79 publications

A pendulum gravity model of outward FDI and export

A pendulum gravity model of outward FDI and export

On the Magnitude of the Geographic Distance Effect on Primary Agricultural and Processed Food Trade

International automotive production networks: how the web comes together

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