The Gravity Model

Anderson, James E.

doi:10.1146/annurev-economics-111809-125114

Cited by 862 publications

(697 citation statements)

References 36 publications

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“…The gravity model adds geographical factors-including economic scale and distance, inter alia-to analyze both the factors that determine trade volume between bloc economies and the welfare effect of FTAs. Going beyond analogy with Newton's Law of Gravitation, the recent literature provides a theoretical and economic foundation for gravity modeling (Anderson and van Wincoop 2003;Anderson 2011). Table 2 lists the studies that have examined the welfare effects of FTAs that have occurred with respect to South Korea's agricultural trade.…”

Section: Literature Reviewmentioning

confidence: 99%

FTA Effects on Agricultural Trade with Matching Approaches

Lee

Lim

2015

Economics

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While the trade effect of free trade agreements (FTAs) is a global issue, little research has examined the economic effects of trade liberalization on agricultural products with robust empirical methods. In this study, propensity score matching for controlling selection bias is used to examine and analyze the effect of FTAs on the trade of South Korea's agricultural products. To enhance the robustness of the estimated results, differences between the FTA treatment effects in 2010 and 2012 are analyzed. The results reveal that the effect of FTAs on agricultural trade varies slightly, depending on the matching approach used; however, the signs of all estimated average treatment effects on the treated (ATT) values are positive. Analysis of the difference between selection bias controlled through matching and uncontrolled selection bias shows that the value of the average treatment effect (ATE) with uncontrolled bias is greater than the ATT estimate calculated through matching. This implies that controlled versus uncontrolled selection bias can result in different ATE and ATT estimates, and that previous studies on FTA trade effects have overestimated the effect, because selection bias was not fully addressed. JEL C54 F15 Q17

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Section: Literature Reviewmentioning

confidence: 99%

FTA Effects on Agricultural Trade with Matching Approaches

Lee

Lim

2015

Economics

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“…In this paper, to describe changes in urban land use precisely, we used the area of built-up land as one indicator for the size measurement of a city. Thus, GDP, population and a city's size can be applied as important indicators for mass measurements and the economic development level [41,42]. Second, with the development of the economy and infrastructure, the accelerated construction of high-speed railways (HSRs) and highways has brought cities closer together, and the traffic modes of residents have become diverse [43].…”

Section: Intercity Spatial Interaction Modelmentioning

confidence: 99%

A Framework for Spatiotemporal Analysis of Regional Economic Agglomeration Patterns

et al. 2018

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Understanding regional economic agglomeration patterns is critical for sustainable economic development, urban planning and proper utilization of regional resources. Taking Guangdong Province of China as the study area, this paper introduces a comprehensive research framework for analyzing regional economic agglomeration patterns and understanding their spatiotemporal characteristics. First, convergence and autocorrelation methods are applied to understand the economic spatial patterns. Then, the intercity spatial interaction model (ISIM) is proposed to measure the strength of interplay among cities, and social network analysis (SNA) based on the ISIM is utilized, which is designed to reveal the network characteristics of economic agglomerations. Finally, we perform a spatial panel data analysis to comprehensively interpret the influences of regional economic agglomerations. The results indicate that from 2001 to 2016, the economy in Guangdong showed a double-core/peripheral pattern of convergence, with strengthened intercity interactions. The strength and external spillover effects of Guangzhou and Shenzhen enhanced, while Foshan and Dongguan had relatively strong absorptive abilities. Moreover, expanding regional communication and cooperation is key to enhancing vigorous economic agglomerations and regional network ties in Guangdong by spatial panel data analysis. Our results show that this is a suitable method of reflecting regional economic agglomeration process and its spatiotemporal pattern.

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“…With the introduction of these terms in the equation describing bilateral trade flows, we take into account that each sale and each purchase has multiple destinations (for example, if we neglect zero trade flows and assume n countries, that would mean (n -1) 2 destinations in the world) and we take into consideration how each bilateral sale/purchase interact with all other bilateral sales/purchases. This kind of model also called structural gravity model (Anderson, 2011).…”

Section: Gravity Model Specificationmentioning

confidence: 99%