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dc.contributor.authorKleinert, Jörnen_US
dc.contributor.authorNeugebauer, Katjaen_US
dc.date.accessioned2012-03-30en_US
dc.date.accessioned2012-04-10T14:04:26Z-
dc.date.available2012-04-10T14:04:26Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/56776-
dc.description.abstractThis paper looks at the interrelationship between trade in goods and asset holdings, as brought forward by some contributions to the empirical literature in international economics. These contributions argue that single-equation gravity models suffer from an endogeneity bias, culminating in a request for the estimation of systems of gravity equations. Yet, the theoretical basis for such an interrelationship is weak. In this paper we present baseline models of international trade in goods and bank asset holdings, which yield gravity equations that can be tested empirically. We then use these models to test three different explanations for the interrelationship between trade in goods and asset holdings that have been brought forward by the literature: (i) consumption hedging, (ii) sovereign risk, (iii) information spillovers. Our results indicate that none of these channels can explain the interrelationship. We therefore conclude that single-equation gravity models, as opposed to systems of gravity equations, are justified: All you need is trade!en_US
dc.language.isoengen_US
dc.publisherInstitut für Angewandte Wirtschaftsforschung (IAW) Tübingenen_US
dc.relation.ispartofseriesIAW-Diskussionspapiere 80en_US
dc.subject.jelF30en_US
dc.subject.jelF10en_US
dc.subject.ddc330en_US
dc.subject.keywordInternational tradeen_US
dc.subject.keywordinternational bankingen_US
dc.subject.keywordgravity equationsen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwGravitationsmodellen_US
dc.subject.stwInternationale Banken_US
dc.subject.stwVermögenen_US
dc.subject.stwÖkonometrieen_US
dc.subject.stwTheorieen_US
dc.titleAll you need is trade: On the in(ter)dependence of trade and asset holdings in gravity equationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn689533195en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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