Distance, globalization, and international trade

Borchert, Ingo; Yotov, Yoto V.

doi:10.1016/j.econlet.2017.01.023

Cited by 74 publications

(64 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The standard gravity equation in equation (1) can be improved by applying it to panel data and by including intranational trade flows, , along with international trade flows, , as in Yotov (2012) and Borchert and Yotov (2017).11 These changes produce the following gravity specification:…”

Section: Methodsmentioning

confidence: 99%

“…and any home biases in consumption; and is the vector of year dummies that capture the year fixed effects. We follow Yotov (2012) and Borchert and Yotov (2017) As an alternative specification, we allow the origin-country-specific effects and the destination-country-specific effects in equation (2) to vary over time by estimating the following equation:…”

Section: Methodsmentioning

confidence: 99%

“…We The last strand of related empirical work focuses on estimation issues involving the structural gravity model. Our study builds on the work of Yotov (2012) and Borchert and Yotov (2017) that emphasize the importance of including intranational trade in gravity model estimations. These studies resolved the "distance puzzle" and "missing globalization puzzle" by applying the structural gravity model to international and intranational trade flows.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

The gravity model and trade in intermediate inputs

Greaney¹,

Kiyota

2020

World Economy

View full text Add to dashboard Cite

Is the gravity model as applicable to trade in intermediate inputs as it is to trade in final goods? One of the contributions of this paper is that we explicitly account for the dual nature of products that can be used as either intermediate inputs or final goods. We find that the structural gravity model performs extremely well for describing bilateral trade in final goods and in intermediate inputs. Moreover, this continues to hold even when we focus on a subset of countries in which intermediate inputs trade accounts for a growing share of trade, namely 'Factory Asia'. However, the gravity model may perform poorly due to model misspecification (i.e., exclusion of intranational trade) and/or sample selection, even after the model considers the dual nature of products. We demonstrate that the poor performance of the gravity model is not attributable to the large trade flow of intermediate inputs, which supports the continued use of the model as these trade flows continue to grow in importance worldwide.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

The gravity model and trade in intermediate inputs

Greaney¹,

Kiyota

2020

World Economy

View full text Add to dashboard Cite

show abstract

“…Especially after globalization, international trade has developed very much. As a result, the economies of the country became affected by the exchange rate [39,40]. Some countries import their energy needs from abroad because they do not have enough energy sources [41][42][43][44].…”

Section: Literature Review On Gasoline Demandmentioning

confidence: 99%

Elasticity Analysis of Fossil Energy Sources for Sustainable Economies: A Case of Gasoline Consumption in Turkey

et al. 2020

View full text Add to dashboard Cite

The current paper investigates the gasoline demand relationship in the case of Turkey, utilizing different econometric techniques and using quarterly data spanning from 2000Q1 to 2019Q1. The estimation results revealed that income and gasoline price are the main drivers of consumption. The found long-run income, price and auto stock elasticities are 0.25, −0.27 and −0.80, respectively. In addition, it is concluded that in the short-run, gasoline demand does not respond to changes in income, price and car stock. The estimation results also showed that the contribution of commercial and public car stock on gasoline demand is higher than that for private auto stock. Based on the finding of the study it is concluded that to achieve the optimal use of gasoline in line with providing high quality transport services, firstly, policies before the 2012 period can be followed. Secondly, channels such as pricing mechanism and taxation policies can be used in this framework.

show abstract

“…Research conducted by Borchert and Yotov (2017) showed that globalization can affect manufacturing trade in 1986-2006 period and on average the impact has decreased by 10% due to the impact of relations and regional trade agreements that increase over time. It was also known that globalization benefits most in middle-income countries.…”

Section: Introductionmentioning

confidence: 99%

Trade Globalization and Its Impact on Welfare in Indonesia

Aini

Purba

Meilliana

2018

J. Indones. Soc. Sci. and Humanit.

View full text Add to dashboard Cite

Indonesia was experiencing trade globalization in the form of decreasing and uniforming tariffs and eliminating various non-tariff barriers. Trade globalization had a positive and negative impact on Indonesian's welfare. Therefore, this study aims to analyze the effect of Trades Globalization on Indonesians Welfare. The Trade globalization was measured by three variables, namely Trade Openness, Inflation, and Exchange Rate. While Indonesians Welfare was measured by three aspects, namely education aspect using School Enrollment, health aspect using Life Expectancy, and economic aspect using the GDP Per capita. The data used was time series data from 1971-2016. This study applied mix-methods, quantitatively using Structural Equation Modeling Partial Least Square (SEM-PLS) and qualitatively using desk study. The results indicated that Trade Openness and Exchange Rate were positive and significant indicators in measuring Trade globalization. In addition, School Enrollment and GDP Per capita were also positive and significant indicators in measuring Indonesians Welfare. In general, the test showed that Trade globalization had a negative and significant influence on Indonesians Welfare. This fact suggested the importance of controlling exchange rate stability in Indonesia because the exchange rate could affect people's ability to maintain lives through purchasing power. In addition, globalization measured through Trade Openness could be an accommodation to obtain new technology in various fields, such as in education to improve the quality of human resources, in the health sector to treat various diseases and reduce the risk of death, and in the economy, sector to increase Per capita income.

show abstract

Distance, globalization, and international trade

Cited by 74 publications

References 24 publications

The gravity model and trade in intermediate inputs

The gravity model and trade in intermediate inputs

Elasticity Analysis of Fossil Energy Sources for Sustainable Economies: A Case of Gasoline Consumption in Turkey

Trade Globalization and Its Impact on Welfare in Indonesia

Contact Info

Product

Resources

About