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Iterative solutions for structural gravity models in panels

Author

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  • Poissonnier, Aurélien

Abstract

The estimation of structural gravity models for bilateral trade flows faces methodological difficulties. These difficulties are in particular due to the multilateral resistance terms (MRT) which account for the general equilibrium constraints of global trade.

Suggested Citation

  • Poissonnier, Aurélien, 2019. "Iterative solutions for structural gravity models in panels," International Economics, Elsevier, vol. 157(C), pages 55-67.
  • Handle: RePEc:eee:inteco:v:157:y:2019:i:c:p:55-67
    DOI: 10.1016/j.inteco.2018.07.003
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    Cited by:

    1. Berislav ZMUK, 2021. "Investigating the impact of GDP and distance variables in the gravity model using sign and rank tests," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 5-30, June.
    2. Getachew Magnar Kitila & Fuzhong Chen, 2021. "Multilateral Trade Resistance, International Competitiveness and African International Exports: A Network Perspective," International Journal of Science and Business, IJSAB International, vol. 5(10), pages 111-126.
    3. Kox, Henk L.M., 2022. "A micro-macro model of foreign direct investment: knowledge-based gravity forces, self-selection and third-country effects," MPRA Paper 115542, University Library of Munich, Germany.
    4. Michael Pfaffermayr, 2020. "Trade creation and trade diversion of economic integration agreements revisited: a constrained panel pseudo-maximum likelihood approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 985-1024, November.
    5. Pfaffermayr, Michael, 2020. "Constrained Poisson pseudo maximum likelihood estimation of structural gravity models," International Economics, Elsevier, vol. 161(C), pages 188-198.
    6. Kox, Henk L.M., 2022. "Explaining foreign direct investment patterns: a testable micro-macro gravity model for FDI," MPRA Paper 115273, University Library of Munich, Germany.

    More about this item

    Keywords

    Structural gravity model; Panel data; Multilateral resistance; Biproportional projection method;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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