Gravity models of trade: unobserved heterogeneity and endogeneity∗
نویسندگان
چکیده
We consider the estimation of the usual Gravity model of trade, which involves flows of trade, say exports, from country i to country j in time period t. We suggest an easy-to-impliment generalised method of moments estimator that avoids the issues associated with the usual fixed effects treatment of the unobserved heterogeneity in this type of models and at the same time provides consistent parameter estimates in the face of potentially endogenous covariates. JEL Classification: C33, F14, F15
منابع مشابه
A panel data analysis of trade creation and trade diversion effects: The case of ASEAN¬タモChina Free Trade Area
Article history: Received 8 February 2013 Received in revised form 1 April 2014 Accepted 5 April 2014 Available online 13 April 2014 This study uses a theoretically justified gravity model of trade to examine the impact of the ASEAN–China Free Trade Agreement (ACFTA) on exports, focusing on trade creation and diversion effects. The model is tested on a sample of 31 countries over the period dat...
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