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The varying relevance of impact factors in gravity models: An explanation of the delayed development towards global trade

Author

Listed:
  • Bernard M. Gilroy

    (Paderborn University)

  • Nico Stöckmann

    (Paderborn University)

Abstract

Factors in uencing bilateral trade between OECD members vary over time. The change in the relevance of binary variables with progressive globalisation can be attributed to individuals' decisions. These are aggregated as utility functions of heterogeneous agents to justify the delay towards global trade.

Suggested Citation

  • Bernard M. Gilroy & Nico Stöckmann, 2017. "The varying relevance of impact factors in gravity models: An explanation of the delayed development towards global trade," Working Papers CIE 105, Paderborn University, CIE Center for International Economics.
    • Handle: RePEc:pdn:ciepap:105
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    File URL: http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP105.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Globalisation; Trade; Utility Function; Gravity Equation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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