Artikel
Estimating the gravity equation with the actual number of exporting firms
To estimate correctly the effect of variable trade costs on firms' exports, the gravity equation should control for the number of firms that participate in foreign markets. Due to the absence of these data, previous studies control for this omitted variable using econometric strategies that may also lead to inconsistent estimates. To overcome this problem the present paper estimates a gravity equation using a new database compiled by the OECD and EUROSTAT stat that reports the number of exporting firms by reporter and partner country. We show that not controlling for the extensive margin of trade introduces very serious biases in the estimated trade cost coefficients.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Estudios de Economía ; ISSN: 0718-5286 ; Volume: 40 ; Year: 2013 ; Issue: 1 ; Pages: 5-19 ; Santiago de Chile: Universidad de Chile, Departamento de Economía
- Klassifikation
-
Wirtschaft
Empirical Studies of Trade
Economic Integration
- Thema
-
gravity equation
exporting firms
distance
trade costs
OECD
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Minondo, Asier
Requena, Francisco
- Ereignis
-
Veröffentlichung
- (wer)
-
Universidad de Chile, Departamento de Economía
- (wo)
-
Santiago de Chile
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Minondo, Asier
- Requena, Francisco
- Universidad de Chile, Departamento de Economía
Entstanden
- 2013
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