Theoretical and Applied Economics
No. 1 / 2017 (610), Spring
On the life and death of distance
University of Macedonia, Thessaloniki, Greece
Abstract. Buch et al. (2004) explain the “distance puzzle” suggesting that the distance coefficient only measures the importance of bilateral trade with distant countries relative to closer ones, while a large part of the positive effect of decreased distance costs on trade volumes can be captured in the intercept – expected to be positively influenced. Comparing the course of the intercept when trade growth is included to when removed (using an adjusted specification for the model), we do not seem to find any evidence that the impact of (assumed) decreased distance costs can be traced in the intercept. We also find no “death of distance” in “relative” trade over time, consistent with the majority of literature.
Keywords: gravity model, distance puzzle, distance coefficient, bilateral trade.
Contents
- Bankruptcy prediction logit model developed
on Romanian paired sample
Daniel BRÎNDESCU-OLARIU
- The impact of financial risks on economic growth in EU-15
Ionuţ JIANU
Laura-Mădălina PÎRȘCOVEANU
Maria-Daniela TUDORACHE
- Unemployment convergence analysis for Nordic countries: Evidence from linear and nonlinear unit root tests
Burak GÜRIŞ
İpek M. YURTTAGÜLER
Muhammed TIRAŞOĞLU
- Inflation targeting and volatility: Panel evidence
Zied SAYARI
Rima LAJNAF
- Economic structure of educational process
and its implications for the higher education reform
Serguei MIKHAILITCHENKO
- Sustainability of social security systems in EU countries: Panel cointegration analysis with multiple structural breaks
under cross-sectional dependence
Ismet GOCER
Halim TATLI
- The evolution of corruption and its current state – A case study on Romania
Ciprian ROTARU
Raluca GEORGESCU
Dumitru-Alexandru BODISLAV
- Exports in the European Union sub-models.
Determinants and performances
Alina ARSĂNI
George ȘTEFAN
Anca PARASCHIV-GHERMAN
- Growth and distribution of microfinance in India: A panel data analysis
S. SARAVANAN
Devi Prasad DASH
- Human capital and collegiality in academic beehives: Theory and analysis of European Economics faculties
João R. FARIA
Franklin G. MIXON, Jr.
Kamal P. UPADHYAYA
- An empirical assessment of fiscal sustainability for selected South Asian economies
Shruti SHASTRI
A.K. GIRI
Geetilaxmi MOHAPATRA
- The determinants of stock prices: Evidence from the Turkish banking sector
Arif SALDANLI
Mücahit AYDIN
Hakan BEKTAŞ
- Job complexity and wage bargaining
Samir AMINE
- Macroeconomic models
used in structural analysis of GDP
Constantin ANGHELACHE
Alexandru MANOLE
Mădălina-Gabriela ANGHEL
- On the life and death of distance
Orestis VRAVOSINOS
- Vectors of economic growth in the eastern area of the EU
Cătălina MOTOFEI
- Performance management in the context of globalization
Roxana-Lucia MIHAI
Irina Florentina BĂJAN
Alina CREŢU
- Financial development, trade openness and economic growth in MENA countries: TYDL panel causality approach
Hicham AYAD
Mostéfa BELMOKADDEM
- The vulnerabilities of the gas supply system of the Republic of Moldova in the context of its energetic security
Iulian VIȚĂ
Cristina Elena NICOLESCU
- A formal look at the negative interbank rate
Gerasimos T. SOLDATOS
- Informatic system for identifying and evaluation of the environmental aspects
and waste products management
Rodica BUCUROIU
Marius Gabriel PETRESCU
- Banking Union framework and the stability
of the European Banking sector
Andrei HREBENCIUC