A note on the proper econometric specification of the gravity equation

By Peter H. Egger. 2000

713 citations recorded by the source corpus.

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Citations in the corpus

Do Economic Integration Agreements Actually Work? Issues in Understanding the Causes and Consequences of the Growth of Regionalism (2008, positive): “For example, Egger (2000) finds overwhelming evidence for the rejection of a random-effects gravity model relative to a fixed-effects gravity model, using either bilateral-pair or country-specific fixed effects. b. Fixed Effects versus First Differencing A standard discussion on the treatment of…”
Estimation of the Gravity Equation in the Presence of Zero Flows (2006, background): “These deal with, for example, the specification of panel gravity equations, the estimation of cross-section gravity equations, and the correct interpretation of the distance effect on patterns of bilateral trade (e.g., Buch et al., 2004, Egger, 2000, Egger and Pfaffermayr, 2005, and Matyas, 1998).”
In search of WTO trade effects: Preferential trade agreements promote trade strongly, but unevenly (2011, neutral): “5 See e.g., Egger (2000), Cheng and Wall (2005), Baltagi et al. (2003) and Baier and Bergstrand (2007). mutually inclusive coding of trade agreements.”
Comparing alternative methods to estimate gravity models of bilateral trade (2010, background): “According to Egger and Pfaffermayr (2003), country pair specific fixed effects, γi j , as well as time varying fixed effects for the importer and the exporter, γi t , γ j t , are included in the estimation”
FDI promotion through bilateral investment treaties: more than a bit? (2010, background): “Some other studies concentrate on FDI relations within the OECD, or between OECD countries and a small number of East and Central European transition countries; see Egger and Merlo (2007) for a recent example.”
Do Free Trade Agreements Actually Increase Members' International Trade? (2007, background): “For example, Egger (2000) finds 18 The data set is available at the authors' websites (http://www.nd.edu/~jbergstr and http://people.clemson.edu/~sbaier).”
An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials (2002, neutral): “Only a few authors made use of (random effects) panel econometric methods (Baldwin, 1994; Gros and Gonciarz, 1996; Ma´ty´s, 1997; and Egger, 2000).1 Two conceptually different approaches were followed.”
The distance puzzle: on the interpretation of the distance coefficient in gravity equations (2004, background): “…regions log bilateral trade host and source region GDP, host and source region population, bilateral distance, dummy for intra-Russian trade –0.42 (1987), Egger (2000) Fixed effect panel regressions OECD countries, 1985-1996 log bilateral trade relative factor endowments, distance –1.08 to…”
Regionalism and Gravity (2002, neutral): “Egger (2002) also argues against relying on a cross-section framework on the grounds that estimated coefficients are a composite of”
Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows (2003, methodology): “On the other hand, FEM would be a better choice than REM when one is interested in estimating typical trade flows between an ex ante predetermined selection of nations (Egger, 2000).”
The Impact of Infrastructure on Trade and Economic Growth in Selected Economies in Asia (2015, background): “However, the fixed-effect model is a better choice for estimating trade between an ex-ante predetermined selection of economies (Egger 2000).”