Effects of regional trade agreements using a static and dynamic gravity equation

Arbeitspapier

This paper evaluates the static effects of preferential agreements between several economic blocs and areas using a dynamic gravity equation. The main aim is to investigate whether regionalism has fostered intra or/and extra blocs international trade, taking into account the existence of heterogeneity over time and across countries and testing whether a dynamic model is preferred to the traditional static specification of the gravity model. This paper argues that the gravity model should be best estimated using Blundell and Bond's (1998) system-GMM estimator. This procedure remedies some econometric problems such as regressor endogeneity, measurement error and weak instruments, and controls for timeinvariant country-specific effects such as distance or common language.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IAI Discussion Papers ; No. 149

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Empirical Studies of Trade ; Economic Integration

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Martínez-Zarzoso, Inmaculada ; Nowak-Lehmann D., Felicitas ; Horsewood, Nicholas
• Ereignis: Veröffentlichung
• (wer): Georg-August-Universität Göttingen, Ibero-America Institute for Economic Research (IAI)
• (wo): Göttingen
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/27439
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ