English, Article, Journal or magazine article edition: The Changing Incidence of Geography James E. Anderson; Yoto V. Yotov

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Bookmark: http://trove.nla.gov.au/version/72951
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Changing Incidence of Geography
Author
  • James E. Anderson
  • Yoto V. Yotov
Physical Description
  • preprint
Notes
  • The incidence of bilateral trade costs is calculated here using neglected properties of the structural gravity model, disaggregated by commodity and region, and re-aggregated into forms useful for economic geography. For Canada's provinces, 1992- 2003, incidence is on average some five times higher for sellers than for buyers. Sellers' incidence falls over time due to specialization, despite constant gravity coefficients. This previously unrecognized globalizing force drives big reductions in 'constructed home bias', the disproportionate predicted share of local trade; and large but varying gains in real GDP.
  • RePEc:nbr:nberwo:14423
  • Neglected properties of the structural gravity model offer a theoretically consistent method to calculate the incidence of estimated trade costs, disaggregated by commodity and region, and re-aggregated into forms useful for economic geography. For Canada's provinces, 1992-2003, incidence is on average some five times higher for sellers than for buyers. Sellers' incidence falls over time due to specialization, despite constant gravity coefficients. This previously unrecognized globalizing force drives big reductions in 'constructed home bias', the disproportionate share of local trade; and large but varying gains in real GDP. Aggregation biases gravity coefficients downward.
  • geography, gravity model, rade costs, globalization
  • RePEc:boc:bocoec:698
Language
  • English
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