The gravity equation in international trade in services

Fukunari Kimura, Hyun Hoon Lee

Research output: Contribution to journalArticle

149 Citations (Scopus)

Abstract

The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports.

Original languageEnglish
Pages (from-to)92-121
Number of pages30
JournalReview of World Economics
Volume142
Issue number1
DOIs
Publication statusPublished - 2006 Apr

Fingerprint

Trade in services
International trade
Gravity equation
Services trade
Bilateral
Factors
Gravity model
Import

Keywords

  • Economic freedom
  • Gravity model
  • Trade in goods
  • Trade in services

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

The gravity equation in international trade in services. / Kimura, Fukunari; Lee, Hyun Hoon.

In: Review of World Economics, Vol. 142, No. 1, 04.2006, p. 92-121.

Research output: Contribution to journalArticle

Kimura, Fukunari ; Lee, Hyun Hoon. / The gravity equation in international trade in services. In: Review of World Economics. 2006 ; Vol. 142, No. 1. pp. 92-121.
@article{b7f076b2d002491895236694d2027448,
title = "The gravity equation in international trade in services",
abstract = "The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports.",
keywords = "Economic freedom, Gravity model, Trade in goods, Trade in services",
author = "Fukunari Kimura and Lee, {Hyun Hoon}",
year = "2006",
month = "4",
doi = "10.1007/s10290-006-0058-8",
language = "English",
volume = "142",
pages = "92--121",
journal = "Review of World Economics",
issn = "1610-2878",
publisher = "Springer Verlag",
number = "1",

}

TY - JOUR

T1 - The gravity equation in international trade in services

AU - Kimura, Fukunari

AU - Lee, Hyun Hoon

PY - 2006/4

Y1 - 2006/4

N2 - The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports.

AB - The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports.

KW - Economic freedom

KW - Gravity model

KW - Trade in goods

KW - Trade in services

UR - http://www.scopus.com/inward/record.url?scp=33746865550&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=33746865550&partnerID=8YFLogxK

U2 - 10.1007/s10290-006-0058-8

DO - 10.1007/s10290-006-0058-8

M3 - Article

AN - SCOPUS:33746865550

VL - 142

SP - 92

EP - 121

JO - Review of World Economics

JF - Review of World Economics

SN - 1610-2878

IS - 1

ER -