What determines intra-EU trade? The gravity model revisited

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dc.citation.epage250en_US
dc.citation.spage244en_US
dc.citation.volumeNumber39en_US
dc.contributor.authorOk, S. T.en_US
dc.date.accessioned2016-02-08T09:58:45Z
dc.date.available2016-02-08T09:58:45Z
dc.date.issued2010en_US
dc.departmentDepartment of Accounting Information Systemsen_US
dc.description.abstractSince the pioneering work of Tinbergen (1962) and Pöyhonen (1963), the gravity model has become the standard tool to study bilateral trade. Alternative approaches, such as a complete demand system by country as in Barten et al. (1976), were never very popular. We propose several extensions of the standard gravity model. The modified equation is tested using panel data of 140 observations over the period 2000-2008. This yields a specification that allows for (i) a more flexible income response; (ii) a competitiveness effect with a general and a specific component; and (iii) an alternative and consistent measure of remoteness. The extensions were found to be significant factors in explaining intra-EU trade.en_US
dc.description.provenanceMade available in DSpace on 2016-02-08T09:58:45Z (GMT). No. of bitstreams: 1 bilkent-research-paper.pdf: 70227 bytes, checksum: 26e812c6f5156f83f0e77b261a471b5a (MD5) Previous issue date: 2010en
dc.identifier.eissn1450-2887en_US
dc.identifier.urihttp://hdl.handle.net/11693/22333
dc.language.isoEnglishen_US
dc.source.titleInternational Research Journal of Finance and Economicsen_US
dc.subjectBorder effectsen_US
dc.subjectEU countriesen_US
dc.subjectGravity equationen_US
dc.subjectTradeen_US
dc.titleWhat determines intra-EU trade? The gravity model revisiteden_US
dc.typeArticleen_US

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