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Laura Márquez-Ramos and Inmaculada Martínez-Zarzoso
 
''DOES HETEROGENEITY MATTER IN THE CONTEXT OF THE GRAVITY MODEL?''
( 2005, Vol. 6 No.17 )
 
 
This paper argues that there is a differential behaviour between the richest and the poorest economies in the gravity model framework. Results show that geographical and cultural factors are more important for developing than for developed economies, and a good economic policy in developing countries is to invest in technological innovation and in transport infrastructure.
 
 
Keywords: developed and developing countries
JEL: F1 - Trade: General
F1 - Trade: General
 
Manuscript Received : Oct 18 2005 Manuscript Accepted : Oct 20 2005

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