The Gravity of Distance: Evidence from a Trade embargo
| Author | Al-Malk, Afnan |
| Author | Maystadt, Jean-Francois |
| Author | Zanardi, Maurizio |
| Available date | 2021-10-18T10:50:39Z |
| Publication Date | 2021 |
| Publication Name | Qatar University Annual Research an Exhibition 2021 (quarfe) |
| Citation | Al-Malk A., Maystadt J. F., Zanardi M., "The Gravity of Distance: Evidence from a Trade embargo", Qatar University Annual Research Forum and Exhibition (QUARFE 2021), Doha, 20 October 2021, https://doi.org/10.29117/quarfe.2021.0171 |
| Abstract | On June 5, 2017, an airspace blockade was imposed on the State of Qatar by four of its neighbors: Saudi Arabia, Bahrain, United Arab Emirates, and Egypt. We study the exogenous increase in air transportation costs with non-blockading countries to examine the effect of increased travel distance on bilateral trade. Based on a gravity model estimated with a Poisson pseudo-maximum likelihood, we find a distance elasticity of trade between -0.3 and -0.5. Our findings revise downwards cross-sectional estimates of the distance elasticity of trade and confirm more recent estimates exploiting similar time-varying shocks to distance. |
| Language | en |
| Publisher | Qatar University Press |
| Subject | International trade Gravity model Economics GIS |
| Type | Poster |
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Theme 4: Social Sciences and Humanities [35 items ]