WORKING PAPER
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Year: 2005

Title:
The Non-Linear Specification Of The Gravity Model: An Empirical Application On International Trade

JEL: F10

Authors:

Suarez-Burguet, C., Martinez-Zarzoso, I. and Marquez-Ramos, L.

Abstract: 
In this paper, we estimate a linear and a non-linear augmented gravity model with a 62-cross-country sample. In order to analyse for the presence of heterogeneity, we also analyse bilateral trade flows for different groups of countries, classified according their level of economic development. Our results show that, in most cases, the linear gravity equation seems to be a better alternative and that there is heterogeneity in the sample. 

Keywords: 
Gravity equation, linear and non-linear specification

Contact address: lmarquez at eco.uji.es

Paper URL: http://In Personal/Miembros del departamento/Márquez Ramos, Laura (English) at www.eco.uji.es

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