The gravity model has been extensively used in international trade research for the last 40
years because of its considerable empirical robustness and explanatory power. Since their …

The existing trade literature on the gravity model is extensive. This paper aims to present a
survey of the current gravity model by taking stock of the existing knowledge on the major …

This chapter focuses on the estimation and interpretation of gravity equations for bilateral
trade. This necessarily involves a careful consideration of the theoretical underpinnings …

Distance is a central concept in international business research, yet there is debate about
the construct as well as its operationalization. In this editorial, we address three of the most …

Although economists have long been aware of Jensen's in-equality, many econometric
applications have neglected an important implication of it: under heteroskedasticity, the …

We develop a monopolistically competitive model of trade with firm heterogeneity—in terms
of productivity differences—and endogenous differences in the “toughness” of competition …

We find that the Internet stimulates trade. Evidence from time-series and cross-section
regressions shows a significant effect of the Internet on trade in recent years. Our results …

Corruption and imperfect contract enforcement dramatically reduce international trade. This
paper estimates the reduction using a structural model of import demand in which insecurity …

This paper examines how country, industry, and firm characteristics interact in general
equilibrium to determine nations' responses to trade liberalization. When firms possess …

This paper examines the impact of corruption on foreign direct investment (FDI). It argues
that corruption results not only in a reduction in FDI, but also in a change in the composition …