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Semiparametric estimation of varying trade elasticities in gravity

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  • Hu, Yushan
  • Zhang, Penglong

Abstract

This paper uses the semiparametric method to estimate the trade elasticities varying to trade partners’ income per capita. The distance elasticity is relatively larger for South–South country pairs than North–North country pairs. Trade between homogeneous partners in terms of income is more distance-elastic than trade between heterogeneous partners.

Suggested Citation

  • Hu, Yushan & Zhang, Penglong, 2021. "Semiparametric estimation of varying trade elasticities in gravity," Economics Letters, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:ecolet:v:209:y:2021:i:c:s0165176521003979
    DOI: 10.1016/j.econlet.2021.110120
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    References listed on IDEAS

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    3. Shenglong Liu & Penglong Zhang, 2022. "Foreign Direct Investment and Air Pollution in China: Evidence from the Global Financial Crisis," The Developing Economies, Institute of Developing Economies, vol. 60(1), pages 30-61, March.

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    More about this item

    Keywords

    Semiparametric estimation; Trade elasticity; Gravity model;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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