The proper panel econometric specification of the gravity equation: A three-way model with bilateral interaction effects

We argue that the proper specification of a panel gravity model should include main (exporter, importer, and time) as well as time invariant exporter-by-importer (bilateral) interaction effects. In a panel of 11 APEC countries, the latter are highly significant and account for the largest part of variation. Copyright Springer-Verlag Berlin Heidelberg 2003

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Year of publication:	2003
Authors:	Egger, Peter ; Pfaffermayr, Michael
Published in:	Empirical Economics. - Department of Economics and Finance Research and Teaching. - Vol. 28.2003, 3, p. 571-580
Publisher:	Department of Economics and Finance Research and Teaching
Subject:	Gravity equation \| Panel econometrics

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Extent:	text/html
Type of publication:	Article
Classification:	C33 - Models with Panel Data ; F14 - Country and Industry Studies of Trade ; F15 - Economic Integration
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005166684