Search results for "Gravity model of trade"
showing 10 items of 30 documents
Do foreign workers reduce trade barriers? Microeconomic evidence
2015
This paper provides evidence that foreign workers reduce firms' trade costs and thus increase the probability that firms export. This informs both the literature on trade costs and the microeconomic literature on firms' export behaviour. We identify the nationality of each worker in a large sample of German establishments, and relate this to the exporting behaviour of these establishments. We allow for the possible endogeneity of an establishment's workforce by instrumenting the share of foreign workers with the regional distribution of foreign workers in the wider labour market. We find a significant effect of worker nationality on exporting which is not driven by the industrial, occupatio…
The trade-enhancing effect of immigration networks: New evidence on the role of geographic proximity
2012
Abstract We use migration-trade data from Italian, Portuguese and Spanish provinces to examine the importance of geographic proximity in the effectiveness of ethnic networks on bilateral trade. Empirical findings from the gravity model show that the migration-trade link is clearly in-province: exports from a province to a country do not receive any stimuli from immigrants from this country living outside of the province, once we control for country–province time-invariant fixed effects.
The Structure of Financial Networks
2010
We present here an overview of the use of networks in Finance and Economics. We show how this approach enables us to address important questions as, for example, the structure of control chains in financial systems, the systemic risk associated with them and the evolution of trade between nations. All these results are new in the field and allow for a better understanding and modelling of different economic systems.
Understanding german fdi in latin america and asia: a comparison of glm estimators
2020
The growth of Foreign Direct Investment (FDI) in developing countries over the last decade has attracted an intense academic and policy-oriented interest for its determinants. Despite the gravity model being considered a useful tool to approximate bilateral FDI flows, the literature has seen a growing debate in relation to its econometric specification, so that which is the best estimator for the gravity equation is far from conclusive. This paper examines the determinants of German outward FDI in Latin America and Asia for the period 1996-2012 by evaluating the performance of alternative Generalized Linear Model (GLM) estimators. Our findings indicate that Negative Binomial Pseudo Maximum …
Calculation and inversion of two-dimensional gravity in the vicinity of Lake Tuz, Turkey
2000
Abstract An example of gravity inversion and interpretation is presented which demonstrates how a priori information can be used to derive reliable, though complex models. In this case, the geometry of the studied model profile has been constructed on the basis of seismic and geological data. The densities used in the forward calculations were obtained from laboratory measurements of drill cores, from density-velocity relationships, and from Nettleton’s method of fitting gravity and topography. In the seismic section 21 ‘formations’ are distinguished leading to a very complex gravity model. What is called ‘formations’ here, are two-dimensional bodies which are distinguished from each other …
German bank lending to industrial and non-industrial countries: driven by fundamentals or different treatment?
2005
This paper shows that the substantial disparity in German bank lending towards industrial (IC) and non-industrial (Non-IC) countries is largely explained by differences in countries' endowments and only to a minor extent by German banks' different treatment of these country groups. This is demonstrated by applying a decomposition technique to an augmented gravity model that is estimated for German foreign lending using a new micro panel data-set on individual claims from the Deutsche Bundesbank covering the period from 1996 to 2002.
Hotel chain performance: a gravity-DEA approach
2011
Performance in business management can be measured in terms of competitiveness and efficiency. Generally speaking, competitiveness is a comparative concept of the ability of a firm, sub-sector or country to sell and supply goods and/or services in a given market, as measured by its market share. Particularly in competitive markets, efficiency plays a key role in determining this ability but it is not, by itself, sufficient. Indeed, while competitiveness has more to do with “pursuing the correct strategy” towards the conservation and/or increase of the market share, operational efficiency is mainly a measure of how well the firm, sub-sector or country under study processes inputs to achieve …
Estimating the Effect of Common Currencies on Trade: Blooming or Withering Roses?
2013
Abstract Using a gravity model and data on 182 countries worldwide, this paper estimates the effects of exchange rate volatility and currency unions on international trade for ten years spanning 1980 through 2010. We provide added confirmation and further strengthen the empirical findings in Rose (2000) prior to 1999, but we find a gradually diminishing Rose effect for the 2000-2010 period, when the Euro Zone is added to the currency union dummy. The rest of the coefficients generally comply in magnitude and sign with what is standard in the “gravity” literature. Our findings support a much stronger effect of a currency union on trade than the hypothetical effect of reducing exchange rate v…
Correspondence between modified gravity and general relativity with scalar fields
2018
We describe a novel procedure to map the field equations of nonlinear Ricci-based metric-affine theories of gravity, coupled to scalar matter described by a given Lagrangian, into the field equations of General Relativity coupled to a different scalar field Lagrangian. Our analysis considers examples with a single and $N$ real scalar fields, described either by canonical Lagrangians or by generalized functions of the kinetic and potential terms. In particular, we consider several explicit examples involving $f(R)$ theories and the Eddington-inspired Born-Infeld gravity model, coupled to different scalar field Lagrangians. We show how the nonlinearities of the gravitational sector of these t…
Canonical equivalence of a generic 2-D dilaton gravity model and a free field
1997
We show that a canonical transformation converts, up to a boundary term, a generic 2-D dilaton gravity model into a free field theory with a Minkowskian target space.