Cobham, David; Adam, Christopher - Centre for Dynamic Macroeconomic Analysis, University … - 2007
In estimating a gravity model it is essential to analyse not just bilateral trade resistance, the barriers to trade … between a pair of countries, but also multilateral trade resistance (MTR), the barriers to trade that each country faces with … effects on trade of exchange rate regimes and other variables or to perform accurate counterfactual simulations of trade …