Haq, Zahoor Ul; Meilke, Karl D.; Cranfield, John A.L. - Canadian Agricultural Trade Policy Research Network (CATPRN) - 2011
and this is a problem when estimating log-linear gravity equations. This has caused many researchers to either ignore the zero trade flows or to replace the zero with a small positive number. Both of these actions bias the resulting parameter estimates of the gravity equation. In this study we...