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On Theories Explaining the Success of the Gravity Equation

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NBER1998-04-01 更新2025-01-04 收录
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We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity Equation. Since versions of both models can generate this prediction, we tackle the model

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1998-04-01
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