Do trade flows interact in space? Spatial origin-destination modeling of gravity
Purpose – This study proposes spatial origin-destination threshold Tobit to address spatial interdependence among bilateral trade flows while accounting for zero trade volumes. Design/methodology/approach – This model is designed to capture multiple forms of spatial autocorrelation embedded in “dire...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-09-01
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| Series: | International Trade, Politics and Development |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/ITPD-06-2022-0009/full/pdf |
| _version_ | 1797789113606209536 |
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| author | Shali Luo Seung-Whan Choi |
| author_facet | Shali Luo Seung-Whan Choi |
| author_sort | Shali Luo |
| collection | DOAJ |
| description | Purpose – This study proposes spatial origin-destination threshold Tobit to address spatial interdependence among bilateral trade flows while accounting for zero trade volumes. Design/methodology/approach – This model is designed to capture multiple forms of spatial autocorrelation embedded in “directional” trade flows. The authors apply this improved model to export flows among 32 Asian countries in 1990. Findings – The empirical results indicate the presence of all three types of spatial dependence: exporter-based, importer-based and exporter-to-importer-based. After further considering multifaceted spatial correlation in bilateral trade flows, the authors find that the effect of conventional trade variables changes in a noticeable way. Research limitations/implications – This finding implies that the standard gravity model may produce biased estimates if it does not take spatial dependence into account. Originality/value – This paper attempts to offer an improved model of the standard gravity model by taking spatial dependence into account. |
| first_indexed | 2024-03-13T01:45:12Z |
| format | Article |
| id | doaj.art-f3645cd3254348228fbf8af17cf68034 |
| institution | Directory Open Access Journal |
| issn | 2586-3932 2632-122X |
| language | English |
| last_indexed | 2024-03-13T01:45:12Z |
| publishDate | 2022-09-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | International Trade, Politics and Development |
| spelling | doaj.art-f3645cd3254348228fbf8af17cf680342023-07-03T09:15:32ZengEmerald PublishingInternational Trade, Politics and Development2586-39322632-122X2022-09-0162466010.1108/ITPD-06-2022-0009Do trade flows interact in space? Spatial origin-destination modeling of gravityShali Luo0Seung-Whan Choi1Department of Economics, University of Missouri Columbia, Columbia, Missouri, USADepartment of Political Science, University of Illinois at Chicago, Chicago, Illinois, USAPurpose – This study proposes spatial origin-destination threshold Tobit to address spatial interdependence among bilateral trade flows while accounting for zero trade volumes. Design/methodology/approach – This model is designed to capture multiple forms of spatial autocorrelation embedded in “directional” trade flows. The authors apply this improved model to export flows among 32 Asian countries in 1990. Findings – The empirical results indicate the presence of all three types of spatial dependence: exporter-based, importer-based and exporter-to-importer-based. After further considering multifaceted spatial correlation in bilateral trade flows, the authors find that the effect of conventional trade variables changes in a noticeable way. Research limitations/implications – This finding implies that the standard gravity model may produce biased estimates if it does not take spatial dependence into account. Originality/value – This paper attempts to offer an improved model of the standard gravity model by taking spatial dependence into account.https://www.emerald.com/insight/content/doi/10.1108/ITPD-06-2022-0009/full/pdfTradeSpatial dependenceTobit |
| spellingShingle | Shali Luo Seung-Whan Choi Do trade flows interact in space? Spatial origin-destination modeling of gravity International Trade, Politics and Development Trade Spatial dependence Tobit |
| title | Do trade flows interact in space? Spatial origin-destination modeling of gravity |
| title_full | Do trade flows interact in space? Spatial origin-destination modeling of gravity |
| title_fullStr | Do trade flows interact in space? Spatial origin-destination modeling of gravity |
| title_full_unstemmed | Do trade flows interact in space? Spatial origin-destination modeling of gravity |
| title_short | Do trade flows interact in space? Spatial origin-destination modeling of gravity |
| title_sort | do trade flows interact in space spatial origin destination modeling of gravity |
| topic | Trade Spatial dependence Tobit |
| url | https://www.emerald.com/insight/content/doi/10.1108/ITPD-06-2022-0009/full/pdf |
| work_keys_str_mv | AT shaliluo dotradeflowsinteractinspacespatialorigindestinationmodelingofgravity AT seungwhanchoi dotradeflowsinteractinspacespatialorigindestinationmodelingofgravity |