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| Agostino, Maria Rosaria; Aiello, Francesco; Cardamone, Paola. |
| There are two sources of bias in the existing gravity equations used to assess the impact of non-reciprocal preferential trade policies (NRPTPs). The main inconsistency comes from the use of aggregate export flows at country level to analyse the effects of trade preferences which, by contrast, apply at product level. The second source of bias is that the literature does not deal with the main econometric issues which are likely to be present when a gravity equation is estimated. This paper discusses the first problem using evidence based on three levels of data aggregation (total exports, total agricultural exports and 2-digit). Furthermore, the estimation methods take into account the unobservable country heterogeneity as well as the endogeneity of trade... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International Relations/Trade. |
| Ano: 2007 |
URL: http://purl.umn.edu/7294 |
