The tyranny of distance and the gravity of resources

Robertson, Peter E. and Robitaille, Marie-Claire (2017) The tyranny of distance and the gravity of resources. Economic Record . ISSN 0013-0249

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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.

Item Type: Article
Additional Information: This is the peer reviewed version of the following article: Robertson, P. E. and Robitaille, M.-C. (2017), The Tyranny of Distance and the Gravity of Resources. Econ Rec. doi:10.1111/1475-4932.12368, which has been published in final form at: This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Keywords: Energy, Geography, Gravity Model, International Trade, Resources.
Schools/Departments: University of Nottingham Ningbo China > Faculty of Humanities and Social Sciences > School of Economics
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Depositing User: Yu, Tiffany
Date Deposited: 15 Nov 2017 09:03
Last Modified: 04 May 2020 19:02

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