IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v7y2007i1n6.html
   My bibliography  Save this article

The Role of Distance in Gravity Regressions: Is There Really a Missing Globalisation Puzzle?

Author

Listed:
  • Márquez-Ramos Laura

    (Institute of International Economics and Universitat Jaume I)

  • Martínez-Zarzoso Inmaculada

    (Institute of International Economics, Universitat Jaume I and Ibero-America Institute for Economic Research)

  • Suárez-Burguet Celestino

    (Institute of International Economics and Universitat Jaume I)

Abstract

The main aim of this paper is to investigate the role of distance in gravity regressions in relation to the missing globalisation puzzle cited by Coe et al. (2002). These authors claimed that the fact that distance coefficients do not fall over time is another puzzle that should have been added in Obsfeld and Rogoff's (2000) paper, in which six major puzzles in international macroeconomics were cited. In order to do so, a linear and a non-linear gravity model are estimated for a cross-section of 65 countries over the period 1980-1999. Non-linear specifications of the gravity model have been recently used in the literature to address the issue of non-declining transport costs over time (Coe et al., 2002 and Croce et al., 2004). However, we claim that there is no missing globalisation puzzle once the linear specification results are correctly interpreted. The main findings are that distance has a different effect for developed and developing countries and that the grounds for using a non-linear specification are not clear since the linear specification, in general terms, shows better performance than the non-linear one.

Suggested Citation

  • Márquez-Ramos Laura & Martínez-Zarzoso Inmaculada & Suárez-Burguet Celestino, 2007. "The Role of Distance in Gravity Regressions: Is There Really a Missing Globalisation Puzzle?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-25, January.
    • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:6
    DOI: 10.2202/1935-1682.1557
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.1557
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1935-1682.1557?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Naudé, Wim & Matthee, Marianne, 2012. "Do Export Costs Matter in Determining Whether, When, and How Much African Firms Export?," Working Papers 38, JICA Research Institute.
    2. Inmaculada Mart󹑺-Zarzoso, 2013. "The log of gravity revisited," Applied Economics, Taylor & Francis Journals, vol. 45(3), pages 311-327, January.
    3. repec:wsr:wpaper:y:2012:i:095 is not listed on IDEAS
    4. Elisaveta Archanskaia & Guillaume Daudin, 2012. "Heterogeneity and the Distance Puzzle," Documents de Travail de l'OFCE 2012-17, Observatoire Francais des Conjonctures Economiques (OFCE).
    5. repec:spo:wpmain:info:hdl:2441/53r60a8s3kup1vc9ji21mi9p3 is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/53r60a8s3kup1vc9ji21mi9p3 is not listed on IDEAS
    7. Naudé, Wim, 2009. "Geography, transport and Africa’s proximity gap," Journal of Transport Geography, Elsevier, vol. 17(1), pages 1-9.
    8. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy