An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials

By Peter H. Egger. 2002

663 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/990c95e5a0e905ba56b6e15eec72e7e3261372c2

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

The distance puzzle: on the interpretation of the distance coefficient in gravity equations (2004, background): “…–0.42 (1987), Egger (2000) Fixed effect panel regressions OECD countries, 1985-1996 log bilateral trade relative factor endowments, distance –1.08 to –1.23 Egger (2002) Panel regressions OECD and 10 transition economies, 1986-1997 log bilateral exports GDP, country size, difference in relative…”
Patent validation at the country level—The role of fees and translation costs (2009, neutral): “Although the explanatory power of the gravity model has been recognized for long, scholars have continuously worked on finding stronger theoretical foundations (e.g., Linnemann (1966) and Bergstrand (1984)) as well as better econometric specifications (e.g., Matyas (1998) and Egger (2002)).”
Trade in Services: Does Gravity Hold? (2006, neutral): “As an alternative to both the fixed effects and random effects models, Egger (2002, 2005) proposes the use of the Hausman and Taylor model (HTM).20 The HTM employs an instrumental variable approach that uses information solely from within the dataset to eliminate the correlation between the…”
The Gravity Model Specification for Modeling International Trade Flows and Free Trade Agreement Effects: A 10-Year Review of Empirical Studies (2010, background): “According to Egger [76], selection between fixed and random effects models depends on the interests of the analysis, the country sample, the data properties and the underlying theoretical model used.”
Trade Potentials in Gravity Panel Data Models (2005, neutral): “…trade enhancing effect of countries’ integration, their aim being to predict the additional bilateral trade to be expected if integration between two countries (or more than two countries) is fostered.2 As summarized by Egger (2002), two main strategies have been used to calculate trade potentials.”
Trade Integration of Central and Eastern European Countries: Lessons from a Gravity Model (2005, positive): “Subsequent research on panel estimators (see Egger and Pfaffermayr, 2003) showed, however, that instead of using one dummy variable per country, individual country pair dummies (fixed effects) should be included to get efficient estimators. These specifications, which usually include also time dummi”
The Impact of International Economic Sanctions on Trade: An Empirical Analysis (2003, background): “Egger (2002) and Matyas (1997) also suggest that the fixed effect model performs better in gravity-approach analyses.”
Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model (2006, neutral): “…from members to non-members (an increase signifying an improvement in welfare for non-members).8 Therefore, the correct ex-post assessment (e.g. Egger, 2002; Soloaga and Winters, 2001) of a RTA on the volume of trade should include the following dummy variables (associated coefficients in…”
African Regional Agreements: Impact on Trade With or Without Currency Unions (2004, methodology): “This method has been used for a gravity equation by Brun et al. (2002), Egger (2002), or Carrère (2002).”
Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach (2010, methodology): “quality of governance that relates to FDI inflows employed in Egger and Winner (2006), a measure of openness of country j employed in Mody,”
Trade Blocks and the Gravity Model: A Study of Economic Integration among Asian Developing Countries (2010, methodology): “Recent studies that used this method include Egger (2002), Baltagi et al. (2003), Serlenga and Shin (2007), and Kabir and Salim (2010).”