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Regionalism and Gravity
Author(s) -
Greenaway David,
Milner Chris
Publication year - 2002
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/1467-9485.00249
Subject(s) - regionalism (politics) , extant taxon , economics , gravity model of trade , regional trade , international economics , international trade , economic geography , regional science , free trade , political science , geography , politics , democracy , biology , law , evolutionary biology
Gravity models have been extensively used to evaluate the trade effects of regional trading arrangements, (RTAs), especially over the last 10 years or so. Questions addressed by researchers include, is there a regional bias to trade and are there identifiable trade affects attributable to RTAs? This paper reviews the evidence extant from this literature and evaluates the modelling and methodological issues confronted when applying gravity modelling to the analysis of regionalism. The paper argues that the approach has a distinctive role to play in evaluating trade effects and its application has been enhanced by both the refinement of theoretical underpinnings and development of econometric technique.