The proper panel econometric specification of the gravity equation: A three-way model with bilateral interaction effects
We argue that the proper specification of a panel gravity model should include main (exporter, importer, and time) as well as time invariant exporter-by-importer (bilateral) interaction effects. In a panel of 11 APEC countries, the latter are highly significant and account for the largest part of variation. Copyright Springer-Verlag Berlin Heidelberg 2003
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Volume (Year): 28 (2003)
Issue (Month): 3 (July)
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