How do borders affect trade? Are cultural and institutional differences important for trade? Is environmental policy relevant to trade? How does one's income or wage relate to the fact that trade partners are nearby or far away? These are just some of the important questions that can be answered using the gravity model of international trade. This model predicts and explains bilateral trade flows in terms of the economic size and distance between trading partners (e.g. states, regions, countries, trading blocs). In recent years, there has been a surge of interest in this model and it is now one of the most widely applied tools in applied international economics. This book traces the history of the gravity model and takes stock of recent methodological and theoretical advances, including new approximations for multilateral trade resistance, insightful analyses of the measurement of economic distance and analyses of foreign direct investment.
Contents
List of figures; List of tables; 1. Introduction: the comeback of the gravity equation S. Brakman and P. A. G. van Bergeijk; Part I. Methodology: 2. A general equilibrium theory for estimating gravity equations of bilateral FDI, final goods, and intermediate trade flows J. H. Bergstrand and P. Egger; 3. The incidence of gravity J. E. Anderson; 4. Approximating general equilibrium impacts of trade liberalizations using the gravity equation: applications to NAFTA and the European Economic Area S. L. Baier and J. H. Bergstrand; 5. An extended gravity model with substitution applied to international trade J. A. Bikker; Part II. Distance in the Gravity Model: 6. Illusory border effects: distance mismeasurement inflates estimates of home bias in trade K. Head and T. Mayer; 7. Trade costs, market access and economic geography: why the empirical specification of trade costs matters M. Bosker and H. Garretsen; 8. Intangible barriers to international trade: a sectoral approach J. Möhlmann, S. Ederveen, H. L. F. de Groot and G.-J. M. Linders; Part III. Specific Applications: 9. International environmental arrangements and international commerce A. Rose and M. Spiegel; 10. Diplomatic relations and trade reorientation in transition countries E. Afman and M. Maurel; 11. Unlocking the value of cross-border mergers and acquisitions S. Brakman, H. Garretsen, G. Garita and C. van Marrewijk; 12. The impact of economic geography on GDP per capita in OECD countries H. Boulhol and A. de Serres; Index.
Contributors
J.E.Anderson, S. Brakman, P. A. G. van Bergeijk, J. H. Bergstrand, P. Egger, S. L. Baier, J. H. Bergstrand, J. A. Bikker, K. Head, T. Mayer, M. Bosker, H. Garretsen, J. Möhlmann, S. Ederveen, H. L. F. de Groot, G.-J. M. Linders, A. Rose, M. Spiegel, E. Afman, M. Maurel, G. Garita, C. van Marrewijk, H. Boulhol, A. de Serres
2010, Forthcoming, Cambridge University Press.
See:
Foreign Direct Investment and the Multinational Enterprise, 2008, MIT Press
eds.:Steven Brakman, Harry Garretsen, ISBN-10:
0-262-02645-7
:
The multinational firm and its main vehicle, foreign direct investment, are key forces in economic globalization. Their importance to the world economy can be seen in the fact that since 1990 foreign direct investment has grown more rapidly than the world GDP and world trade. Despite this, the causes and consequences of multinational firm activity are little understood and until recently relatively unexamined in the theoretical literature. This CESifo volume fills this gap, examining the multinational enterprise (MNE) and foreign direct investment (FDI) from both theoretical and empirical perspectives. In the theoretical chapters, leading scholars take a wide range of modern analytical approaches--from new growth and trade theories to new economic geography, industrial organization, and game theory. Taking current theoretical work on MNE and FDI as a starting point and aiming to extend the existing theoretical framework, the contributors consider such topics as investment liberalization and firm location, tax competition, and welfare consequences of FDI and outsourcing. The empirical chapters test several of the key hypotheses of recent theoretical work on MNE and FDI, examining topics that include productivity effects on Italian MNEs, the different effects of outsourcing in Austria and Poland, location decisions of MNEs in the European Union, and other topics.
Contributors:
Oscar Amerighi, Bruce A. Blonigen, Steven Brakman, Davide Castellani, Ronald B. Davies, Alan V. Deardorff, Fabrice Defever, Harry Garretsen, Anders N. Hoffmann, Andzelika Lorentowicz, James R. Markusen, Charles van Marrewijk, Dalia Marin, James R. Markusen, Alireza Naghavi, Helen T. Naughton, Giorgio Barba Navaretti, J. Peter Neary, Gianmarco Ottaviano, Alexander Raubold, Glen R. Waddell.
New Economic Geography, Empirics, and Regional Policy, CPB, ISBN 90-5833-281-0. Steven Brakman, Harry Garretsen, Joeri Gorter. Albert van der Horst, Marc Schramm
:
Downloadable
NATIONS AND FIRMS IN THE GLOBAL ECONOMY,
Steven Brakman, Harry Garretsen, Charles van Marrewijk, and Arjen van Witteloostuijn -
Forthcoming, Cambridge University Press, 2005. For more information (click here)
New Economic Geography -
Closing the Gap between Theory and Empirics, Conference, Hamburg, 14-15 October, 2004.
For more information (click here)
Inleiding (klik hier) bij Preadviezen van de Koninklijke Vereniging voor de Staathuishoudkunde, 2003
In 1933 merkte de latere Nobelprijswinnaar economie Bertil Ohlin reeds op dat het vakgebied van de internationale handel en de ruimtelijke economie in principe hetzelfde onderzoeksobject hebben. Beide disciplines proberen de vraag te beantwoorden wie, wat, waar produceert en waarom. Sindsdien hebben beide vakgebieden zich meer of minder los van elkaar ontwikkeld.
Hoe beide vakgebieden weer bij elkaar komen en de consequenties daarvan is het onderwerp van de preadviezen van 2003.
In 1977 a seminal paper was published by Avinash Dixit and Joseph Stiglitz that revolutionized the modeling of imperfectly competitive markets. It launched what might be called the second monopolistic competition revolution which has been far more successful than the first one, initiated by Edward Chamberlin and Joan Robinson in the 1930s. In this collection of original essays experts in the fields of macroeconomics, international trade theory, economic geography, and international growth theory address the question of why the second revolution was so successful. They also highlight what is missing, and look forward to the next step in the modeling of imperfectly competitive markets. The text includes a comprehensive survey of both monopolistic competition revolutions, and previously unpublished working papers by Dixit and Stiglitz that led to their famous 1977 paper. Other contributors include Joe Stiglitz, Avinash Dixit, Wilfred Ethier, Joe Francois, Richard Baldwin, Vernon Henderson and Peter Neary.
Cambridge University Press Steven Brakman, Harry Garretsen, Charles van Marrewijk Published, November 2001
Description
The need for a better understanding of the role location plays in economic life was first and most famously made explicit by Bertil Ohlin in 1933. However it is only recently, with the development of computer packages able to handle complex systems, as well as advances in economic theory (in particular an increased understanding of returns to scale and imperfect competition), that Ohlin’s vision has been met and a framework developed which explains the distribution of economic activity across space. This book is an integrated, non-mathematical, first-principles textbook presenting Geographical Economics to advanced students. Never avoiding advanced concepts, its emphasis is on examples, diagrams, and empirical evidence, making it the ideal starting point prior to monographic and journal material. Contains copious computer simulation exercises, available in book and electronic format to encourage learning and understanding through application. Uses case study material from North America, Europe, Africa and Australasia.
Chapter Contents
1. A first look at geography, trade and development; 2. Geography and economic theory; 3. The core model of geographical economics; 4. Solutions and simulations; 5. Geographical economics and empirical evidence; 6. Refinements and extensions; 7. Cities and congestion: the economics of Zipf’s Law; 8. Agglomeration and international business; 9. The structure of international trade; 10. Dynamics and economic growth; 11. The policy implications and value added of geographical economics; References.
