The DOI matches its Crossref record; 59 of the 59 references it cites were found in a registry or an index.
Comparing alternative methods to estimate gravity models of bilateral trade
Open accessAbstract
The gravity equation has been traditionally used to predict trade flows across countries. However, several problems related with its empirical application still remain unsolved. The unobserved heterogeneity, the presence of heteroskedasticity in trade data or the existence of zero flows, which make the estimation of the logarithm unfeasible, are some of them. This paper provides a survey of the most recent literature concerning the specification and estimation methods of this equation. For a dataset covering 80% of world trade, the most widely extended estimators are compared, showing that the Heckman sample selection model performs better overall for the specification of gravity equation selected.
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Citations
Cites
Sample Selection Bias as a Specification Error
Heckman, J. J. (1979) · Econometrica · doi:10.2307/1912352 · Cited by 28,779
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Melitz, M. J. (2003) · Econometrica · doi:10.1111/1468-0262.00467 · Cited by 12,309
Gravity with Gravitas: A Solution to the Border Puzzle
Anderson, J. E., & van Wincoop, E. (2003) · American Economic Review · doi:10.1257/000282803321455214 · Cited by 7,566
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The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence
Bergstrand, J. H. (1985) · The Review of Economics and Statistics · doi:10.2307/1925976 · Cited by 3,020
Estimating Trade Flows: Trading Partners and Trading Volumes *
Helpman, E., Melitz, M., & Rubinstein, Y. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.2.441 · Cited by 2,436
Bergstrand, J. H. (1989) · The Review of Economics and Statistics · doi:10.2307/1928061 · Cited by 1,798
Estimating log models: to transform or not to transform?
Manning, W. G., & Mullahy, J. (2001) · Journal of Health Economics · doi:10.1016/s0167-6296(01)00086-8 · Cited by 1,790
Gravity for Dummies and Dummies for Gravity Equations
Baldwin, R., & Taglioni, D. (2006) · doi:10.3386/w12516 · Cited by 1,206
Cited by
Global forecasts of shipping traffic and biological invasions to 2050
Sardain, A., Sardain, E., & Leung, B. (2019) · Nature Sustainability · doi:10.1038/s41893-019-0245-y · Cited by 466
The Trade Effects of Endogenous Preferential Trade Agreements
Egger, P., Larch, M., Staub, K. E., & Winkelmann, R. (2011) · American Economic Journal: Economic Policy · doi:10.1257/pol.3.3.113 · Cited by 269
Metadata
- Authors
- Gómez-Herrera, E.
- Venue
- Empirical Economics
- Published
- 2012-03-28
- Volume
- 44
- Issue
- 3
- Pages
- 1087-1111
- ISSN
- 0377-7332 (ISSN-L)
- 1435-8921
- OpenAlex
- W2043067998
- Cited by
- 273
- References
- 59
- FWCI
- 32.75
- Type
- journal article
- Language
- en
- Open access
- green
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