EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/17901
  
Title:The Distance Puzzle: On the Interpretation of the Distance Coefficient in Gravity Equations PDF Logo
Authors:Buch, Claudia M.
Kleinert, Jörn
Toubal, Farid
Issue Date:2003
Series/Report no.:Kieler Arbeitspapiere 1159
Abstract:Globalization seems to have diminished the importance of geographical distance. However, empirical studies find that distance coefficients in gravity equations change little over time. This paper argues that changes in distance coefficients do not carry much information on changes in distance costs over time. Changes in distance costs are to a large extent picked up solely in the constant term of gravity models. The distance coefficient instead measures the relative difference between far way and close countries. A proportional fall in distance costs that leads to a proportional increase in economic activity would be consistent with constant distance coefficients.
Subjects:distance coefficients
gravity equations
globalization
JEL:F21
F0
Document Type:Working Paper
Appears in Collections:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

Files in This Item:
File Description SizeFormat
kap1159.pdf439.58 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/17901

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.