The DOI matches its Crossref record; 57 of the 64 references it cites were found in a registry or an index.
Gravity for Dummies and Dummies for Gravity Equations
Open accessAbstract
This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors.The paper provides estimates of the size of the biases taking the currency union trade effect as an example.We generalize Anderson-Van Wincoop's multilateral trade resistance factor (which only works with cross section data) to allow for panel data and then show that it can be dealt with using time-varying country dummies with omitted determinants of bilateral trade being dealt with by time-invariant pair dummies.
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“To underscore the importance of the MRs Baldwin and Taglioni (2006) dub the omission to control for them 'the gold medal mistake' in gravity estimations.”
From Estimating the effects of trade agreements: Lessons from 60 years of methods and data (2024) · cites this paper as Baldwin and Taglioni (2006)
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“Baldwin and Taglioni (2006) emphasise that, as a function of time-varying bilateral trade costs, MRs are also time-varying, which implies that the proper set of fixed effects in panel gravity regressions should be of dimension exporter-time and importer-time.”
From Estimating the effects of trade agreements: Lessons from 60 years of methods and data (2024) · cites this paper as Baldwin and Taglioni (2006)
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Citations
Cites
(2001) · RePEc: Research Papers in Economics · Cited by 27,577
Gravity with Gravitas: A Solution to the Border Puzzle
Anderson, J. E., & van Wincoop, E. (2003) · American Economic Review · doi:10.1257/000282803321455214 · Cited by 7,566
Trade Liberalisation and “Revealed” Comparative Advantage 1
Balassa, B. (1965) · The Manchester School · doi:10.1111/j.1467-9957.1965.tb00050.x · Cited by 4,809
(1979) · American Economic Review · Cited by 3,564
The nature and growth of vertical specialization in world trade
Hummels, D., Ishii, J., & Yi, K. (2001) · Journal of International Economics · doi:10.1016/s0022-1996(00)00093-3 · Cited by 3,225
Market Structure and Foreign Trade
Brander, J. A., Helpman, & Krugman (1986) · Canadian Journal of Economics/Revue canadienne d économique · doi:10.2307/135294 · Cited by 3,037
The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence
Bergstrand, J. H. (1985) · The Review of Economics and Statistics · doi:10.2307/1925976 · Cited by 3,013
National Borders Matter: Canada-U.S. Regional Trade Patterns.
McCallum, J. C. P. (1995) · American Economic Review · Cited by 1,980
Market structure and foreign trade
Helpman, E. (1985) · Cited by 1,377
Can Vertical Specialization Explain the Growth of World Trade?
Yi, K. (2003) · Journal of Political Economy · doi:10.1086/344805 · Cited by 1,356
Research works printed but not linked: 5
- Leamer, E. E. 1984. Sources of International Comparative Advantage. Cambridge, MIT Press.
- Markusen, and Venables, Anthony "The General Theory of Inter-Industry-, Intra-Industry-, and Multinational Trade", Journal of International Economics 52 (2000), 209-234.
- Poyhonen, Pentti. 1963a. "A Tentative Model for the Volume of Trade Between Countries", Welwirtschaftliches Archiv, 90 (1): 93-99.
- Poyhonen, Pentti. 1963b. "Toward a General Theory of International Trade", Ekonomiska Samfundets Tidskrift, 16(2): 69-78.
- Rose, Andrew K. and E. van Wincoop (2001) "National Money as a Barrier to Trade: The Real Case for Monetary Union", American Economic Review 91-2, 386-390.
Cited by
Sorted by citations
The design of international trade agreements: Introducing a new dataset
Dür, A., Baccini, L., & Elsig, M. (2013) · The Review of International Organizations · doi:10.1007/s11558-013-9179-8 · Cited by 759
Costantini, V., & Mazzanti, M. (2012) · Research Policy · doi:10.1016/j.respol.2011.08.004 · Cited by 613
GRAVITY REDUX: MEASURING INTERNATIONAL TRADE COSTS WITH PANEL DATA
Novy, D. (2012) · Economic Inquiry · doi:10.1111/j.1465-7295.2011.00439.x · Cited by 545
Jafari‐Sadeghi, V., García-Pérez, A., Candelo, E., & Couturier, J. (2020) · Journal of Business Research · doi:10.1016/j.jbusres.2020.11.020 · Cited by 521
Benedictis, L. D., & Tajoli, L. (2011) · World Economy · doi:10.1111/j.1467-9701.2011.01360.x · Cited by 484
Metadata
- Authors
- Baldwin, R., & Taglioni, D.
- Affiliations
- European Central Bank (DE)
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2006-09
- OpenAlex
- W2126230473
- Cited by
- 1,206
- References
- 64
- Citations by year
- 2026: 32 · 2025: 51 · 2024: 51 · 2023: 61 · 2022: 57 · 2021: 77 · 2020: 63 · 2019: 44 · 2018: 46 · 2017: 54 · 2016: 56 · 2015: 78 · 2014: 93 · 2013: 71 · 2012: 73
- Type
- report
- Language
- en
- Open access
- green
- doi.org
- Locations
- National Bureau of Economic Research (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- National Bureau of Economic Research (submittedVersion)
- Graduate Institute Geneva Institutional Repository (Graduate Institute of International and Development Studies) (submittedVersion, cc-by-nc-nd)
- Graduate Institute Geneva Institutional Repository (Graduate Institute of International and Development Studies) (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Keywords
- gravity model, panel data
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