The gravity model has long been used for modelling and predicting trade flows. This paper generalises the gravity model allowing for proper representation of local and target country effects and also the business cycle. The new approach is based on a panel data framework (instead of a simple...

Since the early seventies an increasing attention has been paid to the impact environmental policy might have on foreign trade. One of the most important issues is whether countries with relatively strict environmental regulations tend to experience a deterioration of international...

Transition from economic theory to a testable form of model invariably involves the use of certain "simplifying assumptions." If, however, these are not valid, misspecified models result. This article considers estimation of the dynamic linear panel data model, which often forms the basis of...

The paper introduces the appropriate within estimators for the most frequently used three-dimensional fixed effects panel data models. It analyzes the behavior of these estimators in the cases of no self-flow data, unbalanced data, and dynamic autoregressive models. The main results are then...

The transition from economic theory to a testable form invariably involves the use of certain "simplifying assumptions". However, if these are not valid, misspecified model result. This paper considers consistent estimation of the dynamic panel model which often forms the basis of testable...