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The Changing Incidence of Geography
Journal article   Open access   Peer reviewed

The Changing Incidence of Geography

James E. Anderson and Yoto V. Yotov
The American economic review, v 100(5), pp 2157-2186
01 Dec 2010
url
https://doi.org/10.1257/aer.100.5.2157View
Published, Version of Record (VoR)Open Access (License Unspecified) Open

Abstract

Business & Economics Economics Social Sciences
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, sellers' incidence is on average some five times higher than buyers' incidence. 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 predicted share of local trade; and large but varying gains in real GDP. (JEL F11, F14, R12)

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Collaboration types
Domestic collaboration
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Economics
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