Recently, discussion about the appropriate estimation of gravity trade models has started in agriculture. Here, we are going to review recent developments in the literature. It appears that fixedeffects Poisson Pseudo Maximum Likelihood is not only the only consistent estimator [Santos Silva and...

This paper questions whether the overseas expansion of a country's retailers fosters overall bilateral exports towards these host markets. To address this question, we consider an empirical trade model, where the foreign sales of multinational retailers reduce the fixed and variable trade costs...