@article{b7f076b2d002491895236694d2027448,
title = "The gravity equation in international trade in services",
abstract = "The main purpose of this paper is to assess the impact of various factors on bilateral services trade, relative to that on bilateral goods trade. To accomplish this purpose, using the standard gravity model, we ran regressions on bilateral services trade and goods trade between 10 OECD member countries and other economies (including OECD member and nonmember countries) for the years 1999 and 2000. One main and interesting result is that services trade is better predicted by gravity equations than goods trade. Another interesting result is that there is a complementary relationship between goods exports and services imports.",
keywords = "Economic freedom, Gravity model, Trade in goods, Trade in services",
author = "Fukunari Kimura and Lee, {Hyun Hoon}",
note = "Funding Information: Remark: Hyun-Hoon Lee acknowledges that his work was supported by Korea Research Foundation Grant (KRF-2004-041-B00106). This paper was presented at the European Trade Study Group Conference, University of Nottingham, September 9–11, 2004, and at the International Economics Forum, the Bank of Korea. The authors are grateful to the participants for their useful comments. They also thank Daniel Mirza, Leo Gr{\"u}nfeld, Herbert Grubel, Hyeon-Seung Huh, and the referee of this journal for their helpful comments and suggestions, and Euijung Park for her efficient research assistance. Please address correspondence to Hyun-Hoon Lee, Division of Economics and International Trade, Kangwon National University, Chuncheon 200-701, Korea; e-mail: hhlee@kangwon.ac.kr 1 For example, production and consumption of a service must appear simultaneously, and services have an intangible nature.",
year = "2006",
month = apr,
doi = "10.1007/s10290-006-0058-8",
language = "English",
volume = "142",
pages = "92--121",
journal = "Review of World Economics",
issn = "1610-2878",
publisher = "Springer Verlag",
number = "1",
}