The changing incidence of geography / James E. Anderson, Yoto V. Yotov.

By: Anderson, James EContributor(s): Yotov, Yoto V | National Bureau of Economic ResearchMaterial type: TextTextSeries: Working paper series (National Bureau of Economic Research) ; no. 14423.Publication details: Cambridge, Mass. : National Bureau of Economic Research, 2008Description: 48 p. : ill. ; 22 cmSubject(s): Economic geography | Trade regulation -- CanadaLOC classification: HB1 | .N38 no. 14423Online resources: Click here to access online Summary: The incidence of bilateral trade costs is calculated here using neglected properties of the structural gravity model, disaggregated by commodity and region, and re-aggregated into forms useful for economic geography. For Canada's provinces, 1992-2003, incidence is on average some five times higher for sellers than for buyers. Sellers' incidence falls over time due to specialization, despite constant gravity coefficients. This previously unrecognized globalizing force drives big reductions in 'constructed home bias', the disproportionate share of local trade; and large but varying gains in real GDP.
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Research Papers HB1.N38 no. 14423 (Browse shelf (Opens below)) 1 Available 0013119159

Includes bibliographical references(p. 32-33).

The incidence of bilateral trade costs is calculated here using neglected properties of the structural gravity model, disaggregated by commodity and region, and re-aggregated into forms useful for economic geography. For Canada's provinces, 1992-2003, incidence is on average some five times higher for sellers than for buyers. Sellers' incidence falls over time due to specialization, despite constant gravity coefficients. This previously unrecognized globalizing force drives big reductions in 'constructed home bias', the disproportionate share of local trade; and large but varying gains in real GDP.

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