Illusory Border Effects: Distance mismeasurement inflates estimates of home bias in trade

By Thierry Mayer, Keith Head. 2002

491 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/cf5ae15217b5d5f64b44dea2772f7367d992bb7d

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Citations in the corpus

Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route (2018, methodology): “more recent and sophisticated approach is to measure distance between two countries using the population weighted average index created by (Head and Mayer, 2010; de Sousa et al., 2012).”
Distance, Trade, and Income -- The 1967 to 1975 Closing of the Suez Canal as a Natural Experiment (2009, methodology): “Head and Mayer (2002) develop the methodology for the weighted measures.”
Market Access in Global and Regional Trade (2011, unknown): “The basic idea, inspired by Head and Mayer (2010), is to calculate distance between two countries based on bilateral distances between cities weighted by the share of the city in the overall country’s population.”
Trade and Income—Exploiting Time Series in Geography (2019, methodology): “Head and Mayer (2002) develop the methodology for the weighted measures.”
'Dual' Gravity: Using Spatial Econometrics to Control for Multilateral Resistance (2007, methodology): “As estimation results are known to be somewhat sensitive to the measure of internal distance (see, e.g., Head and Mayer, 2002) we use the values 1/3, 2/3 and 1 for the parameter κ as robustness checks in what follows.21 Hourly wages are obtained from Statistics Canada for the Canadian provinces,…”
MNEs as border-crossing multi-location enterprises: The role of discontinuities in geographic space (2013, background): “Recent studies show that the existing mean-based measures used in the literature overestimate effective distances and that this distance inflation is stronger the closer the two nations are to each other (e.g., Head & Mayer, 2010).”
The Geography of Trade in Online Transactions: Evidence from eBay and MercadoLibre (2009, background): “Table 1 presents some summary statistics on the final number of observations in our sample (123,333).(12)”
Emigration and Democracy (2011, unknown): “…the biggest cities of the two countries (with those inter-city distances being weighted by the share of the city in the total population of the country, see Head and Mayer (2002)), lnPopi;00 represents the (log) of the total population at origin in 2000, and aj is a destination-country Öxed e§ect.”
The Currency Union Effect on Trade: Early Evidence from EMU (2003, background): “19 In a recent article, Head and Mayer (2002) have argued that the measurement of distance in the gravity model has been misspecified.”
Estimates of the Trade and Welfare Effects of NAFTA (2012, unknown): “38The method we propose is similar to the odds ratio method developed by Head and Ries (2001) and also presented in Head and Mayer (2001).”
Is the International Border Effect Larger than the Domestic Border Effect? Evidence from U.S. Trade (2009, unknown): “3 Robustness Various authors have pointed out that the estimation of border effects is sensitive to how distance is measured, see Helliwell and Verdier (2001) and Head and Mayer (2009). For example, if the economic distance within a U.S. state is much shorter than indicated by the conventional measu”