- Journal Article
Customary empirical gravity models are parametric and rely on the assumption that exports from country i to j depend on an additive index of three components: i-specific supply potential which is common across importers j; j-specific demand potential which is common across exporters i; and bilateral trade frictions which are indexed by ij and common within ij in a generic period. We demonstrate that the data reject the constancy of these components within category. The variation of trade-agreement-depth effects within category across country pairs and time is striking. Show more
Journal / seriesEconomics Letters
Pages / Article No.
SubjectGravity model; Trade flows; Deep trade integration; Panel data; Non-parametric econometrics
Organisational unit03840 - Egger, Peter / Egger, Peter
169537 - Measurement Error in Structural Empirical Work of International Economics (SNF)
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