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Cited by 465

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Controlling for Heterogeneity in Gravity Models of Trade and Integration: Archival Version

Open access
Cheng, I-Hui, Wall, Howard J.·2005·ICPSR Data Holdings

Abstract

This paper compares various specifications of the gravity model of trade as nested versions of a general specification that uses bilateral country-pair fixed effects to control for heterogeneity. For each specification, we show that the atheoretical restrictions used to obtain them from the general model are not supported statistically. Because the gravity model has become the "workhorse" baseline model for estimating the effects of international integration, this has important empirical implications. In particular, we show that, unless heterogeneity is accounted for correctly, gravity models can greatly overestimate the effects of integration on the volume of trade.

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Crossref · 10.3886/icpsr01313

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Metadata

Authors
Cheng, I.-H., & Wall, H. J.
Venue
ICPSR Data Holdings
Published
2005-03-15
OpenAlex
W3121400666
Cited by
465
References
1
Type
dataset
Language
en
Open access
green

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CoChat. (2026). Citation check: Controlling for Heterogeneity in Gravity Models of Trade and Integration: Archival Version. https://app.cochat.ai/papers/10.3886/icpsr01313
The paper
Cheng, I.-H., & Wall, H. J. (2005). Controlling for Heterogeneity in Gravity Models of Trade and Integration: Archival Version. ICPSR Data Holdings. https://doi.org/10.3886/icpsr01313

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.