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Searching for the Appropriate Measure of Multilateral Trade-Resistance Terms in the Gravity Model of Bilateral Trade Flows

Dynamic Econometric Models

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Title Searching for the Appropriate Measure of Multilateral Trade-Resistance Terms in the Gravity Model of Bilateral Trade Flows
 
Creator Drzewoszewska, Natalia; Nicolaus Copernicus University, Department of Statistics and Econometrics
 
Subject : international trade; panel data; gravity model; multilateral trade-resistance terms; bilateral trade costs; globalization in the XXI century; Euro‘s effect

 
Description The aim of the paper is to compare different approximations of multilateral trade-resistance in the gravity model and the influence of their use on estimation results for models of EU-trade. Three synthetic variables: for bilateral trade costs, exporter’s and importer’s remoteness are used as an alternative for including time-varying country effects. Results indicate significant impact of those variables but not wholly compatible with the theory. Estimated coefficients of trade determinants, including Euro’s effects, have expected values in both approaches only if the FE estimator is applied.
 
Publisher Nicolaus Copernicus University
 
Contributor
 
Date 2015-04-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier http://apcz.umk.pl/czasopisma/index.php/DEM/article/view/DEM.2014.002
10.12775/DEM.2014.002
 
Source Dynamic Econometric Models; Vol 14 (2014); 29-49
Dynamic Econometric Models; Vol 14 (2014); 29-49
2450-7067
1234-3862
 
Language eng
 
Relation http://apcz.umk.pl/czasopisma/index.php/DEM/article/view/DEM.2014.002/5250
 
Rights Copyright (c) 2015 Dynamic Econometric Models