Skip to Main content Skip to Navigation
Journal articles

Gravity, market potential and development

Abstract : This article provides evidence on the long-term impact of market potential on economic development. It derives from the New Economic Geography literature a structural estimation where the level of factors' income of a country is related to its proximity to large markets, referred to as 'market potential'. The empirical part evaluates this market potential for all countries in the world with available trade data over the 1965-2003 period and relates it to income per capita. Overall results show that market potential is a powerful driver of increases in income per capita.
Document type :
Journal articles
Complete list of metadata

Cited literature [26 references]  Display  Hide  Download
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Tuesday, July 15, 2014 - 5:07:29 PM
Last modification on : Tuesday, March 22, 2022 - 3:34:47 AM
Long-term archiving on: : Monday, November 24, 2014 - 1:06:49 PM


Explicit agreement for this submission




Keith Head, Thierry Mayer. Gravity, market potential and development. Journal of Economic Geography, Oxford University Press (OUP): Policy F, 2011, 11 (2), pp.281-294. ⟨hal-01024209⟩



Record views


Files downloads