Determinants of bilateral trade flows in OECD countries: evidence from gravity panel data models
Wang, C. and Wei, Y. and Liu, Xiaming (2010) Determinants of bilateral trade flows in OECD countries: evidence from gravity panel data models. World Economy 33 (7), pp. 894-915. ISSN 0378-5920.
This paper aims to identify the main causes of bilateral trade flows in OECD countries. The specific features of the study include the explicit introduction of R&D and FDI as the two important explanatory variables, conduct of unit root tests in the panel data framework and careful consideration of endogeneity. The main findings are that the levels and similarities of market size, domestic R&D stock and inward FDI stock are positively related to bilateral trade, while the distance, measured by both geographical distance and relative factor endowment, between trade partner countries has a negative impact. These findings lend support to new trade, FDI and new growth theories.
|Additional Information:||The definitive version is available at www3.interscience.wiley.com|
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management|
|Date Deposited:||26 May 2011 11:00|
|Last Modified:||29 Apr 2013 09:49|
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