Ocorrerá no dia 18/09/2024, quarta-feira, às 14h na sala 401A – FCE, o Seminário de Pesquisa “Closing the Trade Gap: Investigating the Diminishing Impact of Distance over Time” na área de Economia Aplicada, ministrado pelo Prof. Dr. Silvio Tai (UDESC).
Abstract: This paper investigates whether the impact of distance on trade consistently decreases over time, as technological advances in transportation and communications suggest. The literature argues that the underlying theory based on constant elasticity of substitution (CES) would not be able to detect overall trade cost reductions, which is supported by some empirical studies. We wonder if this theoretical prediction is just an ”anomaly” of the CES framework. We found evidence to this effect. On the one hand, other theoretical models that support the gravity model, based on a translog preference system, do not present this deficiency and can detect general reductions in trade costs. Our estimates based on these models confirm reductions in the impact of distance on trade over time. On the other hand, when we follow the recent studies that incorporates intranational trade flows, the estimations of the gravity model based on the CES also confirm these reductions in the impact of distance on trade over time.
Authors: Silvio H. T. Tai and Izete P. Bagolin.