Gravity Equation and Trade Agreements: A Different Econometric Approach
This paper is aimed at multiplicatively estimating the parameters of the gravity equation by using the Poisson Pseudo-Maximum-Likelihood (PPML) estimator, and taking heteroskedasticity into account at the same time. Besides, in order to compare the results, the model will be estimated trough OLS and Tobit, and the precision of the different estimators will be assessed by a set of specification tests. Results indicate that the effects of Preferential Trade Agreements are very sensitive to the method chosen to estimate the gravity model and the results obtained under PPML are the most reliable.
Volume (Year): XLVI (2008)
Issue (Month): 2 (July)
|Contact details of provider:|| Postal: |
Phone: 54 0351 4437300 int 253
Fax: 54 351 433 4436
Web page: http://ief.eco.unc.edu.ar/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fernando Sanz, 2000. "A kalman filter-gravity equation approach to assess the trade impact of economic integration: The case of Spain, 1986–1992," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(1), pages 84-110, March.
- Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
- Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984.
"Pseudo Maximum Likelihood Methods: Theory,"
Econometric Society, vol. 52(3), pages 681-700, May.
- Soloaga, Isidro & Alan Wintersb, L., 2001.
"Regionalism in the nineties: what effect on trade?,"
The North American Journal of Economics and Finance,
Elsevier, vol. 12(1), pages 1-29, March.
- Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 291-316, November.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
- Santos Silva, J.M.C & Tenreyro, Silvana, 2005.
"The Log of Gravity,"
CEPR Discussion Papers
5311, C.E.P.R. Discussion Papers.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The Log of Gravity," CEP Discussion Papers dp0701, Centre for Economic Performance, LSE.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2003. "Explaining MERCOSUR sectoral exports to the EU: The role of economic and geographical distance," International Trade 0309025, EconWPA.
- Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ief:reveye:v:46:y:2008:i:2:p:83-104. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcelo Coser)
If references are entirely missing, you can add them using this form.