A note on the proper econometric specification of the gravity equation

Economics Letters

Volumn 66, Issue 1, 2000, Pages 25-31

  Egger, Peter ^a  

^a AUSTRIAN INSTITUTE OF ECONOMIC RESEARCH WIFO   (Austria)

Author keywords

C33; F14; F15; Gravity equation; Panel econometrics

Indexed keywords

EID: 0034401604     PISSN: 01651765     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1765(99)00183-4     Document Type: Article

References (17)

1. Baldwin R. Towards an Integrated Europe. 1994;CEPR, London.
2. Baltagi B. Econometric Analysis of Panel Data. 1995;Wiley, Chichester.
3. Breuss, F., Egger, P., 1998. How Reliable are Estimations of East-West Trade Potentials based on Cross-Section Gravity Analyses? Revised Working Paper, Austrian Institute of Economic Research, Vienna.
4. Collins S., Rodrik D. Eastern European and the Soviet Union in the World Economy. 1991;Institute of International Economics, Washington, DC.
5. Deardorff, A.V., 1995. Determinants of Bilateral Trade: Does Gravity Work in a Neoclassic World, NBER Working Paper 5377.
6. Greene, W.H., 1995. Limdep, Version 7.0, User's Manual, Econometric Software, Bellport.
7. Greene W.H. Econometric Analysis. 3rd ed. 1997;Prentice-Hall International, London.
8. Hamilton C.B., Winters L.A. Opening up international trade with Eastern Europe. Economic Policy. 14:1992;77-116.
9. Helpman E. Imperfect competition and international trade: evidence from fourteen industrial countries. Journal of the Japanese and International Economies. 1:(1):1987;62-81.
10. Helpman E., Krugman P.R. Market Structure and Foreign Trade. Increasing Returns, Imperfect Competition, and the International Economy. 1985;MIT Press, Cambridge, MA.
11. Hsiao C. Analysis of Panel Data. 1986;Cambridge University Press, Cambridge, MA.
12. Mátyás L. Proper econometric specification of the gravity model. The World Economy. 20:(3):1997;363-368.
13. Mátyás L. The Gravity Model: some econometric considerations. The World Economy. 21:(3):1998;397-401.
14. Schmalensee R. Inter-industry studies of structure and performance. Schmalensee R., Willig R.D. Handbook of Industrial Organization. 2:1989;North-Holland, Amsterdam.
15. Schumacher D. Perspektiven des Außenhandels zwischen West- und Osteuropa: Ein disaggregierter Gravitationsansatz. 1997;Deutsches Institut für Wirtschaftsforschung, Berlin.
16. Wang, Z.K., Winters, L.A., 1991. The Trading Potential of Eastern Europe, CEPR Discussion Paper 610.
17. Wansbeek T.J., Kapteyn A. Estimation of the error components model with incomplete panels. Journal of Econometrics. 41:(3):1989;341-361.