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When we estimate gravity regressions for trade in services, the coefficient on log distance is similar to that estimated for total trade. In other words,
When we estimate gravity regressions for trade in services, the coefficient on log distance is similar to that estimated for total trade. In other words, a 10% increase in distance between origin and destination is associated with a similar percentage decline in services trade and in total trade
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Microeconomics
Authors: Michael Parkin
11th edition
133019942, 978-0133020250, 133020258, 978-0133019940
