IDEAS home Printed from https://ideas.repec.org/p/trr/wpaper/202511.html
   My bibliography  Save this paper

Do We Really Need Domestic Trade Flows to Evaluate the Impact of Trade Agreements? A Comment

Author

Listed:
  • Xenia Matschke
  • Juan Rene Rojas Rodriguez

Abstract

Campos et al. (2021) (Economics Letters) show that including domestic trade flows in the gravity model is important for estimating the effect of trade agreements (TAs), regardless of how these flows are measured. Without domestic trade flows, TA effects are small, negative, and statistically insignificant. The opposite holds once domestic flows are included. Using the Campos et al. (2021) data, we show that their results are caused by the big size difference between international trade and domestic trade flows in combination with the Poisson Pseudo Maximum Likelihood (PPML) estimator. We find that the TA variable is not statistically significant in the Campos et al. (2021) data.

Suggested Citation

  • Xenia Matschke & Juan Rene Rojas Rodriguez, 2025. "Do We Really Need Domestic Trade Flows to Evaluate the Impact of Trade Agreements? A Comment," Research Papers in Economics 2025-11, University of Trier, Department of Economics.
    • Handle: RePEc:trr:wpaper:202511
    as

    Download full text from publisher

    File URL: https://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2025-11.pdf
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:trr:wpaper:202511. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Matthias Neuenkirch (email available below). General contact details of provider: https://edirc.repec.org/data/petride.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.