Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation

Journal of International Economics

Volumn 77, Issue 1, 2009, Pages 77-85

  Baier, Scott L ^a,b   Bergstrand, Jeffrey H ^c,d,e  

^a Bowling Green State University   (United States)

^b FEDERAL RESERVE BANK OF ATLANTA   (United States)

^c UNIVERSITY OF NOTRE DAME   (United States)

^d UNIVERSITY OF NOTRE DAME   (United States)

^e CESIFO   (Germany)

Author keywords

Border barriers; Gravity equation; International trade; Multilateral resistance terms

Indexed keywords

BILATERAL AGREEMENT; COMPARATIVE STUDY; ECONOMIC CONDITIONS; ESTIMATION METHOD; INCOME DISTRIBUTION; MODEL; MONTE CARLO ANALYSIS; MULTILATERAL TRADE; THEORETICAL STUDY; TRADE FLOW;

VETUS;

EID: 57849141607     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2008.10.004     Document Type: Article

References (22)

1. Adam C., and Cobham D. Modelling multilateral trade resistance in a gravity model with exchange rate regimes. Oxford University working paper (2007) August
2. Anderson J.E. A theoretical foundation for the gravity equation. American Economic Review 69 no. 1 (1979) 106-116 March
3. Anderson J.E., and van Wincoop E. Gravity with gravitas: a solution to the border puzzle. American Economic Review 93 no. 1 (2003) 170-192 March
4. Baier S.L., and Bergstrand J.H. Economic determinants of free trade agreements. Journal of International Economics 64 no. 1 (2004) 29-63 October
5. Baier S.L., and Bergstrand J.H. Bonus vetus OLS: a simple approach for addressing the "border puzzle" and other gravity-equation issues. working paper (2006) March
6. Baier S.L., and Bergstrand J.H. Do free trade agreements actually increase members' international trade?. Journal of International Economics 71 no. 1 (2007) 72-95 March
7. Baier S.L., and Bergstrand J.H. Bonus vetus OLS: a simple method for approximating international trade-cost effects using the gravity equation. working paper (2007) October
8. Baier S.L., and Bergstrand J.H. Estimating the Effects of Free Trade Agreements on International Trade flows using Matching Econometrics. Journal of International Economics 77 (2009) 63-76
9. Bergstrand J.H. The gravity equation in international trade: some microeconomic foundations and empirical evidence. Review of Economics and Statistics 67 no. 3 (1985) 474-481 August
10. Bergstrand J.H., Egger P., and Larch M. Gravity redux: structural estimation of gravity equations with asymmetric bilateral trade costs. working paper (2007)
11. Ciccone A., and Hall R.E. Productivity and density of economic activity. American Economic Review 86 no. 1 (1996) 54-70 March
12. Dolman B. Migration, trade and investment. Australian Government Productivity Commission Staff Working Paper (2008). http://ssrn.com/abstract=1154910 February, http://ssrn.com/abstract=1154910
13. Eaton J., and Kortum S. Technology, geography, and trade. Econometrica 70 no. 5 (2002) 1741-1779 September
14. Egger H., Egger P., and Greenaway D. The Trade Structure Effects of Endogenous Regional Trade Agreements. Journal of International Economics 74 no. 2 (2008) 278-298
15. Feenstra R.C. Advanced International Trade: Theory and Evidence (2004), Princeton Univ Press, Princeton, NJ
16. Felbermayer G.J., and Kohler W. Exploring the intensive and extensive margins of world trade. Review of World Economics 142 (2006) 642-674
17. Helliwell J.F. How Much Do National Borders Matter? (1998), Brookings Institution, Washington, DC
18. Mansfield E.D., and Reinhardt E. Multilateral determinants of regionalism: the effects of GATT/WTO on the formation of preferential trading arrangements. International Organization 57 no. 4 (2003) 829-862 Fall
19. Mansfield E.D., Milner H., C., and Pevehouse J.C. Democracy, Veto Players, and the Depth of Regional Integration. The World Economy 31 no. 1 (2008) 67-96
20. McCallum J. National borders matter: Canada-U.S. regional trade patterns. American Economic Review 85 no. 3 (1995) 615-623 (June)
21. Rose A., and van Wincoop E. National money as a barrier to international trade: the real case for currency union. American Economic Review Papers and Proceedings 91 no. 2 (2001) 386-390 May
22. Silva Santos J.M.C., and Tenreyro S. The log of gravity. Review of Economics and Statistics 88 no. 4 (2006) 641-658 November