Interpreting Spatial Econometric Origin‐destination Flow Models

LeSage, James P.; Thomas‐Agnan, Christine

doi:10.1111/jors.12114

Cited by 73 publications

(74 citation statements)

References 23 publications

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“…LeSage and Pace () and LeSage and Thomas‐Agnan () extend the Anselin () paradigm to define an origin–destination spatial gravity model for regional trade by distinguishing three types of spatial dependence. Considering trade flows from region A to region B : (i) the origin‐based dependence captures the spatial relationship of trade flows from neighbours of A to B ; (ii) the destination‐based dependence considers the relationship from A to neighbours of B ; and (iii) the origin–destination‐based dependence captures the relationship of trade flows from neighbours of A to neighbours of B .…”

Section: Methodsmentioning

confidence: 99%

The effect of broadband on European Union trade: A regional spatial approach

Barbero

Rodríguez‐Crespo

2018

World Economy

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The positive effect of information and communication technologies (ICT) on trade between countries has been widely studied in the literature, but how ICT impacts regional trade is limited due to the lack of regional trade data. In this paper, we test whether broadband, as a proxy for ICT, increases bilateral trade at the regional level in Europe. We use a novel regional trade database of European Union regions and estimate an origin–destination flow gravity model for 2007 and 2010, accounting for spatial dependence among trade flows. Our results indicate that broadband is positive and significant in explaining trade patterns between European regions during both time periods.

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Section: Methodsmentioning

confidence: 99%

The effect of broadband on European Union trade: A regional spatial approach

Barbero

Rodríguez‐Crespo

2018

World Economy

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“…Therefore, FDI spillovers are expected to present a positive impact on neighboring countries' foreign investments. In terms of methodology, we use a spatial econometric interaction model following LeSage and Thomas‐Agnan (). This model allows to detect the existence of FDI spillovers between neighbors of FDI origin countries, neighbors of FDI destination countries, as well as spillovers between neighbors of both the origin and destination countries of FDI.…”

Section: Introductionmentioning

confidence: 99%

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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“…Only more recently, the assumptions of an identical distribution of the disturbances (see Santos Tenreyro 2006, 2015) and of an independent distribution of the disturbances were called into question (see, e.g., Anderson and Wincoop 2004;LeSage and Pace 2008;Behrens et al 2012;LeSage and Satici 2013;Beenstock and Felsenstein 2015;LeSage and Thomas-Agnan 2015). This literature suggests that the assumptions of identically and/or independently disturbances in gravity models are likely violated in practice.…”

Section: Introductionmentioning

confidence: 99%

A generalized spatial error components model for gravity equations

Egger

Pfaffermayr

2015

Empir Econ

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Since the publication of the paper by Anderson and van Wincoop (J Econ Litt 42:691-751, 2004), the estimation of gravity models has turned increasingly structural. The benefit of this development is that empirical models which are based on few parameters explain data on bilateral trade flows relatively well, while being consistent with general equilibrium. The latter permits using the estimated parameters for comparative static analysis. In general, in the cross section such models involve country-pair-specific variables and exporter-specific as well as importer-specific variables. The latter are determined through structural model constraints. The disturbances on this model are typically assumed to be independently if not also identically distributed. This paper illustrates that the assumption of independently distributed disturbances is likely flawed in practice. Ignoring such independence leads to inconsistent test statistics and standard errors of the parameters. We present a structural gravity model which permits the disturbances to be cross-sectionally interdependent in up to three dimensions and illustrate the consequences of doing so for inference.

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Interpreting Spatial Econometric Origin‐destination Flow Models

Cited by 73 publications

References 23 publications

The effect of broadband on European Union trade: A regional spatial approach

The effect of broadband on European Union trade: A regional spatial approach

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

A generalized spatial error components model for gravity equations

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