Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation

By S. Baier, J. Bergstrand. 2009

754 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/31e778517bbad93e1549ebaf81f02abacef07345

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In Economics and Econometrics

Citations in the corpus

Trade facilitation and the extensive margin (2013, background): “These four variables have been constructed following Baier and Bergstrand ( 2009 ), and use bilateral distances ( mrdist ij ), common borders ( mrborder ij ), common languages ( mrlang ij ), and common colonial histories ( mrcolony ij ) among all potential trading partners to control for t”
The WTO trade effect (2011, methodology): “Matching methods have also started to appear in international economics studies such as Persson (2001) on the currency union effect and Baier and Bergstrand (2009b) on the free trade agreement effect.”
The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows (2016, positive): “We follow Baier and Bergstrand (2009), who derive theory-consistent MR indexes from a Taylor series expansion of the Anderson and Van Wincoop (2003) gravity equation.”
Natural Disasters and the Effect of Trade on Income: A New Panel IV Approach (2011, positive): “Those equations do not include pair effects – we substitute these by individual country effects – , nor do they incorporate the Baier and Bergstrand (2009) multilateral resistance variables or trade policy variables (as those are very likely to be endogenous to per capita GDP).”
Facilitating international production networks: The role of trade logistics (2012, positive): “Baier and Bergstrand (2009) show that estimation results obtained in this way are very close to those from nonlinear least squares or fixed effects estimation (without collinear variables), which supports the robustness of this methodology. All results presented in the next section are based on the ”
Gravity Redux: Measuring International Trade Costs with Panel Data (2011, positive): “ndings of Baier and Bergstrand (2001) who argue that two-thirds of the growth in trade amongst OECD countries between 1958 and 1988 can be explained by the growth of income.(32) The innovation of decomposing the growth of trade with equation (13) is to explicitly take multilateral trade barriers int”
The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures (2010, positive): “Baier and Bergstrand (2009) suggest using a first-order log-linear Taylor expansion to approximate the multilateral resistance terms.”
China’s Belt and Road initiative: can Europe expect trade gains? Bruegel Working Paper ISSUE 5/2016 (2016, positive): “Following Baier and Bergstrand (2009), we restrict the coefficients before direct and spill over effects to have identical but oppositely-signed values.”
Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure (2010, methodology): “In next estimates, we replace variables that vary across exporter-importer pairs with expressions corrected to better account for multilateral resistance following a procedure similar to Baier and Bergstrand (2009) and Behar, Manners, and Nelson (2009).”