The Changing Incidence of Geography
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, sellers' incidence is on average some...
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Veröffentlicht in: | The American economic review 2010-12, Vol.100 (5), p.2157-2186 |
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description | 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, sellers' incidence is on average some five times higher than buyers' incidence. 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. |
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For Canada's provinces, 1992-2003, sellers' incidence is on average some five times higher than buyers' incidence. 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.</description><subject>Bias</subject><subject>Bilateral relations</subject><subject>Canada</subject><subject>Coefficients</subject><subject>Commodities</subject><subject>Cost efficiency</subject><subject>Cost estimates</subject><subject>Cost-effectiveness</subject><subject>Costs</subject><subject>Economic costs</subject><subject>Economic geography</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Equilibrium</subject><subject>Expenditures</subject><subject>Export performance</subject><subject>GDP</subject><subject>Geography</subject><subject>Globalization</subject><subject>Gross Domestic Product</subject><subject>International trade</subject><subject>Interprovincial trade</subject><subject>Local economy</subject><subject>Multilateralism</subject><subject>Prices</subject><subject>Provinces</subject><subject>Regional variation</subject><subject>Regions</subject><subject>Shipments</subject><subject>Specialization</subject><subject>Studies</subject><subject>Trade</subject><subject>Trade 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Changing Incidence of Geography</title><author>Anderson, James E. ; Yotov, Yoto V.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c489t-28efc3091be131545051692d8001941d91867f32f72f4092ea6a259b9d5412793</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2010</creationdate><topic>Bias</topic><topic>Bilateral relations</topic><topic>Canada</topic><topic>Coefficients</topic><topic>Commodities</topic><topic>Cost efficiency</topic><topic>Cost estimates</topic><topic>Cost-effectiveness</topic><topic>Costs</topic><topic>Economic costs</topic><topic>Economic geography</topic><topic>Economic models</topic><topic>Economic theory</topic><topic>Equilibrium</topic><topic>Expenditures</topic><topic>Export performance</topic><topic>GDP</topic><topic>Geography</topic><topic>Globalization</topic><topic>Gross Domestic Product</topic><topic>International trade</topic><topic>Interprovincial trade</topic><topic>Local 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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, sellers' incidence is on average some five times higher than buyers' incidence. 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.</abstract><cop>Nashville</cop><pub>American Economic Association</pub><doi>10.1257/aer.100.5.2157</doi><tpages>30</tpages><oa>free_for_read</oa></addata></record> |
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source | Business Source Complete; JSTOR Archive Collection A-Z Listing; American Economic Association Web |
subjects | Bias Bilateral relations Canada Coefficients Commodities Cost efficiency Cost estimates Cost-effectiveness Costs Economic costs Economic geography Economic models Economic theory Equilibrium Expenditures Export performance GDP Geography Globalization Gross Domestic Product International trade Interprovincial trade Local economy Multilateralism Prices Provinces Regional variation Regions Shipments Specialization Studies Trade Trade relations |
title | The Changing Incidence of Geography |
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