The tyranny of distance and the gravity of resources

To what extent does geography remain an important determinant of comparative advantage and factor incomes in resource markets? We estimate gravity models for resources and find that some minerals and fuels, particularly Iron Ore and Gas, do have very high elasticities of trade with respect to distan...

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Main Authors: Robertson, Peter E., Robitaille, Marie-Claire
Format: Article
Published: Wiley 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/47922/
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author Robertson, Peter E.
Robitaille, Marie-Claire
author_facet Robertson, Peter E.
Robitaille, Marie-Claire
author_sort Robertson, Peter E.
building Nottingham Research Data Repository
collection Online Access
description To what extent does geography remain an important determinant of comparative advantage and factor incomes in resource markets? We estimate gravity models for resources and find that some minerals and fuels, particularly Iron Ore and Gas, do have very high elasticities of trade with respect to distance. To assess the implications of this we then consider a simple counterfactual where location advantages are eliminated. We find that for a few countries, including Australia and New Zealand, distance barriers have a large impact of their market share.
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spelling nottingham-479222020-05-04T19:02:52Z https://eprints.nottingham.ac.uk/47922/ The tyranny of distance and the gravity of resources Robertson, Peter E. Robitaille, Marie-Claire To what extent does geography remain an important determinant of comparative advantage and factor incomes in resource markets? We estimate gravity models for resources and find that some minerals and fuels, particularly Iron Ore and Gas, do have very high elasticities of trade with respect to distance. To assess the implications of this we then consider a simple counterfactual where location advantages are eliminated. We find that for a few countries, including Australia and New Zealand, distance barriers have a large impact of their market share. Wiley 2017-08-30 Article PeerReviewed Robertson, Peter E. and Robitaille, Marie-Claire (2017) The tyranny of distance and the gravity of resources. Economic Record . ISSN 0013-0249 Energy Geography Gravity Model International Trade Resources. https://doi.org/10.1111/1475-4932.12368 doi:10.1111/1475-4932.12368 doi:10.1111/1475-4932.12368
spellingShingle Energy
Geography
Gravity Model
International Trade
Resources.
Robertson, Peter E.
Robitaille, Marie-Claire
The tyranny of distance and the gravity of resources
title The tyranny of distance and the gravity of resources
title_full The tyranny of distance and the gravity of resources
title_fullStr The tyranny of distance and the gravity of resources
title_full_unstemmed The tyranny of distance and the gravity of resources
title_short The tyranny of distance and the gravity of resources
title_sort tyranny of distance and the gravity of resources
topic Energy
Geography
Gravity Model
International Trade
Resources.
url https://eprints.nottingham.ac.uk/47922/
https://eprints.nottingham.ac.uk/47922/
https://eprints.nottingham.ac.uk/47922/