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The relation between Urbanisation and International Trade
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis analyses the relationship between urbanisation and international trade by using the gravity model of trade and one elementary model of trade. The causal effect of this study is argued to be that the effect of urbanisation in both the country of origin and destination affects international trade. This is founded by the hypothesis that urbanisation enable agglomeration economies, which entails production externalities that decreases trade costs and increases international trade. The results imply that both urbanisation in the country of origin and destination have a positive and significant effect on export, although the effect of urbanisation in the country of origin is the largest. When dividing the commodities into subsamples based on their technology intensity, the results suggest that each category is affected by the urbanisation in the country of origin. 

Place, publisher, year, edition, pages
2017.
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-326052OAI: oai:DiVA.org:uu-326052DiVA, id: diva2:1118323
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Available from: 2017-08-18 Created: 2017-06-30 Last updated: 2017-08-18Bibliographically approved

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