Comparing alternative methods to estimate gravity models of bilateral trade

Gómez-Herrera, Estrella

doi:10.1007/s00181-012-0576-2

Cited by 191 publications

(82 citation statements)

References 56 publications

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“…See for example Head and Mayer (2014) or Gómez-Herrera (2013) for information on the development of gravity models for trade data.…”

Section: Gravity Modelsmentioning

confidence: 99%

“…For the estimation of the threshold we follow Carson and Sun (2007), who show that taking the minimum positive flow value as the threshold is super-consistent and that using this threshold estimate ensures that the parameter maximum likelihood estimates are asymptotically normal with the asymptotic variance identical to the variance achieved when the threshold is known. In addition, there is the Eaton and Kortum (2001) (2015), Burger, Van Oort, andLinders (2009), Kareem, Martinez-Zarzoso, andBrümmer (2016), Anderson (2011), Gómez-Herrera (2013, Linders and De Groot (2006), and Head and Mayer (2014) for further information.…”

Section: Gravity Modelsmentioning

confidence: 99%

“…The most common challenges when using panel data with gravity models arise because of missing trade flows, unbalanced panels, and computational difficulties. For a comprehensive overview see Egger and Pfaffermayr (2003), Gómez-Herrera (2013) and Head, Mayer, and Ries (2010) as well as the references therein. Egger and Pfaffermayr (2003) provide some comparison of cross-sectional and panel models and show differences when using different variables.…”

Section: Example Datasetsmentioning

confidence: 99%

See 2 more Smart Citations

Gravity Models in R

Wölwer¹,

Breßlein²,

Burgard³

2018

AJS

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Gravity models are used to explain bilateral flows related to the sizes of bilateral partners, a measure of distance between them and other influences on interaction costs. The underlying idea is rather simple. The greater the masses of two bodies and the smaller the distance between them, the stronger their attraction. Even though their basic idea is rather simple, gravity models can become complex regarding the choice of models and estimation methods. As especially for gravity beginners it is difficult to get an overview of the different methods and implement them in R, the package gravity provides a wrapper of different standard estimation methods. By considering the descriptions and codes of these methods, users can get a comprehensive and application-oriented access, see which method may be suitable for certain research questions or types of data, and extend the code available for their specific research projects.

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“…See for example Head and Mayer (2014) or Gómez-Herrera (2013) for information on the development of gravity models for trade data.…”

Section: Gravity Modelsmentioning

confidence: 99%

Section: Gravity Modelsmentioning

confidence: 99%

Section: Example Datasetsmentioning

confidence: 99%

See 1 more Smart Citation

Gravity Models in R

Wölwer¹,

Breßlein²,

Burgard³

2018

AJS

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“…Applications of this model to trade between countries can be found in Linders and de Groot (2006) and in Gomez Herrera (2010).…”

Section: Accounting For Relations With Zero Tradementioning

confidence: 99%

Modelling production-consumption flows of goods in Europe: the trade model within Transtools3

et al. 2017

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The paper presents a new model for trade flows in Europe that is integrated with a logistics model for transport chain choice through Logsum variables. Logsums measures accessibility across an entire multi-modal logistical chain, and are calculated from a logistics model that has been estimated on disaggregated micro data and then used as an input variable in the trade model. Using Logsums in a trade model is new in applied large-scale freight models, where previous models have simply relied on the distance (e. g. crow-fly) between zones. This linkage of accessibility to the trade model makes it possible to evaluate how changes in policies on transport costs and changes in multimodal networks will influence trade patterns. As an example the paper presents outcomes for a European-wide truck tolling scenario, which showcases to which extent trade is influenced by such a policy. The paper discusses how such a complex model can be estimated and considers the choice of mathematical formulation and the link between the trade model and logistics model. In the outcomes for the tolling scenario we decompose the total effects into effects from the trade model and effects from the logistics model.

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“…Gravitačné modely obchodu sa často nazývajú aj "ťažným koňom" medzinárodnej ekonómie (Gómez-Herrera, 2013). Právom.…”

Section: úVodunclassified

Gravity Model of Trade of the Czech and Slovak Republics 1995-2012: How Have Determinants of Trade Changed?

Grančay¹,

Grančay²,

Drutarovská³

et al. 2015

Politicka ekonomie

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ÚvodGravitačné modely obchodu sa často nazývajú aj "ťažným koňom" medzinárodnej ekonómie (Gómez-Herrera, 2013). Právom. Sú jednoduché, logické a ako ukázal Deardorff (1998), dajú sa použiť na testovanie takmer akejkoľvek teórie medziná-rodného obchodu.1 Od ich vzniku v 60. rokoch 20. storočia sa každoročne publikujú stovky viac či menej podstatných článkov skúmajúce gravitačné modely z teoretického hľadiska alebo ich aplikujúce v praxi. Šírka literatúry o tematike a množstvo vykonaných testov dnes umožňujú formulovať niektoré všeobecne prijímané závery o vplyve hospodárskej úrovne, vzdialenosti, hraníc, koloniálnej minulosti, jazyka a ďalších faktorov na obchod. Aj keď výsledky jednotlivých testov sú si podobné, ani za vyše 50 rokov sa ekonómovia nedokázali zhodnúť na tom, ktorý prístup ku gravitačnému modelovaniu je metodologicky správny.V predkladanom článku predstavujeme gravitačné modely obchodu Slovenskej a Českej republiky za obdobie rokov 1995-2012, ktoré doposiaľ v literatúre v takejto forme chýbali. Pri ich tvorbe používame Heckmanovu korekciu a metódu Tobit. Prezentované gravitačné modely poskytujú odpovede na niekoľko otázok o determinantoch zahraničného obchodu SR a ČR v uvedenom období: Je členstvo v Európskej únii významným faktorom priamo ovplyvňujúcim bilaterálne obchodné toky krajín? Ako sa v čase mení význam hospodárskej úrovne, vzdialenosti a spoločnej hranice? Aký vplyv na zahraničný obchod SR a ČR má podobnosť výšky príjmu na obyvateľa s obchodným partnerom? Poznanie odpovedí na tieto otázky má implikácie tak pre ekonomickú teóriu, ako aj pre praktickú hospodársku politiku. Naším prínosom je nielen vytvorenie komplexného gravitačného modelu obchodu SR a ČR a teoretické skúmanie jeho charakteristík, ale tiež stručná interpretácia významu dosiahnutých záverov pre prax. Výskum potvrdí význam členstva v EÚ pre medzinárodný obchod 1 Sám Deardorff však poukázal na to, že táto variabilita použitia zároveň znižuje kredibilitu gravitačného modelu. * Článok bol spracovaný v rámci projektu KEGA 017EU-4/2015 "Tvorba modernej učebnice svetovej ekonomiky s dôrazom na aplikáciu vedomostí v praxi a riešenie problémov", riešenom na Fakulte medzinárodných vzťahov Ekonomickej univerzity v Bratislave.

show abstract

Comparing alternative methods to estimate gravity models of bilateral trade

Cited by 191 publications

References 56 publications

Gravity Models in R

Gravity Models in R

Modelling production-consumption flows of goods in Europe: the trade model within Transtools3

Gravity Model of Trade of the Czech and Slovak Republics 1995-2012: How Have Determinants of Trade Changed?

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