Search results for "gravity model"
showing 10 items of 54 documents
Trade effects of monetary agreements: Evidence for OECD countries
2008
Abstract This paper analyses the effects of monetary agreements on trade flows using a sample of 25 OECD countries over the period 1950–2004. We find that these agreements have boosted intra-bloc trade. This result especially applies to the case of the euro. More importantly, in contrast to regional trade agreements, all monetary agreements analysed show evidence of trade-creating effects with third countries. Finally, only the euro shows a symmetric impact for the trade-creating effect with non-members, that is, using the euro promotes both the Eurozone's exports and its imports to non-Eurozone markets to a similar extent.
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…
Regional inequalities as drivers of affective polarization
2022
This paper investigates divergences in levels of affective polarization across Belgian regions around the 2019 elections. Elaborating on the relative deprivation theory, we analyse the role of current and long-term socio-economic regional inequalities and of geographical distance separating regions. Empirically, we aggregate individual-level measures of affective polarization at the Belgian NUTS-3 level and use a gravity approach to explore the determinants of regional divergences. Our results show that regional variations in affective polarization are best explained by a current rural–urban divide and by how regions have performed economically in the last years. We also show that geographi…
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.
Tidal gravity observations at Mt. Etna and Stromboli: Results concerning the modeled and observed tidal factors
2009
Continuous gravity observations performed in the last few years, both at Mt. Etna and Stromboli, have prompted the need to improve the tidal analysis in order to acquire the best corrected data for the detection of volcano related signals. On Mt. Etna, the sites are very close to each other and the expected tidal factor differences are negligible. It is thus useful to unify the tidal analysis results of the different data sets in a unique tidal model. This tidal model, which can be independently confirmed by a modeling of the tidal parameters based on the elastic response of the Earth to tidal forces and the computation of the ocean tides effects on gravity, is very useful for the precise t…
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 …