Gravity with unemployment

Heid, Benedikt; Larch, Mario

doi:10.1016/j.jinteco.2016.03.008

Cited by 49 publications

(37 citation statements)

References 60 publications

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“…Because there are three batches of products which began to enjoy 6 Santos Tenreyro (2006, 2010) provide evidence on the good performance of PPML by allowing for a large fraction of zeros. This method is commonly used in papers accounting for this problem in international trade, including Anderson and Yotov (2010), Sun and Reed (2010), Handley (2014), Fally (2015), Heid and Larch (2004) and Bertho et al (2016). (2)…”

Section: Methods and Datamentioning

confidence: 99%

Have Free Trade Agreements Created Trade? Evidence from CEPA

Zhou¹

2017

Pacific Economic Review

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This paper revisits the issue of trade creation effects in multi-stage free trade agreements (FTA). In contrast to the empirical studies that use the gravity equation to study trade creation effects, we apply a triple difference in differences approach to resolve their shortcomings, including factors being omitted and endogeneity. After the identification of treatment and control groups at the eight-digit Harmonized System (HS) code product level, the regression analysis results show that there are no significant trade creation effects with the FTA, suggesting that the role of FTA may be a signalling beyond trade.

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Section: Methods and Datamentioning

confidence: 99%

Have Free Trade Agreements Created Trade? Evidence from CEPA

Zhou¹

2017

Pacific Economic Review

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“… Similar arguments are used in the structural trade gravity literature, see, e.g., Heid and Larch ().…”

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confidence: 88%

FDI in Space Revisited: The Role of Spillovers on Foreign Direct Investment within the European Union

Alamá-Sabater¹,

Heid²,

Fernández³

et al. 2016

Growth and Change

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Registro de acceso restringido Este recurso no está disponible en acceso abierto por política de la editorial. No obstante, se puede acceder al texto completo desde la Universitat Jaume I o si el usuario cuenta con suscripción. Registre d'accés restringit Aquest recurs no està disponible en accés obert per política de l'editorial. No obstant això, es pot accedir al text complet des de la Universitat Jaume I o si l'usuari compta amb subscripció. Restricted access item This item isn't open access because of publisher's policy. The full--text version is only available from Jaume I University or if the user has a running suscription to the publisher's contents.

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“…In this appendix, we show that an isomorphic structural gravity framework can be derived from the supply side (see for a nice discussion of demandside and supply-side gravity foundations Anderson, 2011). We base this derivation on the most influential supply-side model, the Ricardian model of international trade by Eaton and Kortum (2002) (see for a similar derivation Heid and Larch, 2016).…”

Section: Appendix A: Structural Gravity From the Supply Sidementioning

confidence: 99%

General Equilibrium Trade Policy Analysis with Structural Gravity

2016

WTO Working Papers

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The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a representative framework for a large class of GE models, to offer a deep analysis of the structural relationships underlying the general equilibrium gravity system, and how they can be exploited to make trade policy inferences. Second, we present and discuss a series of indexes that can be used to summarize the GE effects of trade policy. Third, we summarize the standard procedures to perform counterfactual analysis with the gravity model, and we outline recent methods to obtain theory-consistent GE effects of trade policy with a simple estimation procedure that can be performed in any statistical software package capable of estimating a poisson model (e.g. Stata). Finally, we demonstrate how gravity can be integrated with a broader class of general equilibrium models by nesting the Armington-CES model within a dynamic production superstructure with capital accumulation. JEL Classification Codes: F13, F14, F16

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Gravity with unemployment

Cited by 49 publications

References 60 publications

Have Free Trade Agreements Created Trade? Evidence from CEPA

Have Free Trade Agreements Created Trade? Evidence from CEPA

FDI in Space Revisited: The Role of Spillovers on Foreign Direct Investment within the European Union

General Equilibrium Trade Policy Analysis with Structural Gravity

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