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How does geographic distance affect the impact of trade agreements on bilateral exports, and through what channels … trade flows, geographic distance significantly decreases their effect. Second, this phenomenon is in large part explained by … the impact of economic integration agreements on distance-sensitive goods, in particular intermediates. These results hold …
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This paper analyzes the impacts of selected trade facilitation measures on international trade flows. A gravity model is used to estimate four equations: a pooled cross-section model; a fixed-effects model; a random effects model; and a Poisson maximum likelihood estimator. The contribution of...
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This paper evaluates the performance of alternative estimators of the gravity equation when zero trade flows result from economically-based data-generating processes with heteroscedastic residuals and potentially-omitted variables. In a standard Monte Carlo analysis, the paper finds that this...
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