Navas, A., Serti, F. and Tomasi, C. (2020) The role of the gravity forces on firms’ trade. Canadian Journal of Economics, 53 (3). pp. 1059-1097. ISSN 0008-4085
Abstract
This paper offers both a theoretical framework and empirical evidence on the role that the two gravity forces, namely market size and geographical distance, have indirectly through imports, on firms’ exports patterns. The model shows that sourcing from bigger and closer markets implies higher productivity gains which, in turn, increase firms’ ability to enter export market, as well as their export value. Exploiting data on product and destination-level transactions of a large panel of Italian firms, the paper shows that, on average, the indirect effects of the gravity forces are about one third of their direct effects.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Canadian Economics Association. This is an author-produced version of a paper subsequently published in Canadian Journal of Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Gravity Forces; Geographical distance; Market size; Firms’ heterogeneity; Imports and Exports |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 01 Oct 2019 11:25 |
Last Modified: | 03 Aug 2022 00:13 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/caje.12467 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:151237 |