International Transactions and Regionalism: Distinguishing Insiders from Outsiders.
American Economic Review
1972
The central conclusion from the empirical work is that geographic distance is only one among several persistent and significant influences on international transactions. Some of the other influences--specifically, economic size, culture, economic and technological structure--have relatively greater individual or collective effects than does distance, and all of these other influences trade off against distance at measurable rates that frequently favor the non-distance influences on transactions.
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