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Population Density and Countries' Export Performance: A Supply-Side Structural Gravity with Unilateral Variables

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  • Luca Lodi

Abstract

This paper analyzes the effect of population density on international trade using a theoretical and empirical framework. It builds on the works of Allen and Arkolakis (2014), Allen et al. (2020) and Freeman et al. (2021) to derive a structural gravity model that identifies the impact of country-specific features on bilateral exports. The study interprets Heid et al. (2020) and Freeman et al. (2021) empirical approaches. Focusing on population density as a component of productivity and agglomeration, it explores how density influences country specialization and comparative advantages in labor-intensive or natural resource-dependent industries. The research suggests that population density significantly impacts manufacturing but negatively affects mining, with further investigation needed for agriculture, forestry, and fisheries.

Suggested Citation

  • Luca Lodi, 2024. "Population Density and Countries' Export Performance: A Supply-Side Structural Gravity with Unilateral Variables," Working Papers - Economics wp2024_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2024_11.rdf
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    More about this item

    Keywords

    structural gravity model; economic geography; population density;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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