The distance puzzle: on the interpretation of the distance coefficient in gravity equations

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Estimation of the Gravity Equation in the Presence of Zero Flows (2006, background): “These deal with, for example, the specification of panel gravity equations, the estimation of cross-section gravity equations, and the correct interpretation of the distance effect on patterns of bilateral trade (e.g., Buch et al., 2004, Egger, 2000, Egger and Pfaffermayr, 2005, and Matyas, 1998).”
Egalitarianism and International Investment (2011, unknown): “Following the use of gravity models in the trade literature, the basic proxy for cultural distance in finance has been geographical distance (see Buch, Kleinert, and Toubal, 2004).”
International Taxation and the Direction and Volume of Cross-Border M&As (2006, unknown): “Portes and Rey (2005), for instance, estimate a gravity equation for trade in financial assets, while Wei (2000), Evenett (2003), and Buch, Kleinert, and Toubal (2004) use the gravity model to explain FDI flows.”
Exploring the Intensive and Extensive Margins of World Trade (2004, unknown): “More recently, Buch et al. (2004) argue against the notion of a distance-puzzle in that globalization may work as much through a ﬀ ecting the intercept of the gravity equation, as through a change in the estimated distance-elasticity.”