@techreport{Martinez-Zarzoso2006Effects,
abstract = {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.},
address = {G\"{o}ttingen},
author = {Inmaculada Mart\'{\i}nez-Zarzoso and Felicitas Nowak-Lehmann D. and Nicholas Horsewood},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F14; F15; 330},
language = {eng},
number = {149},
publisher = {Ibero-Amerika-Inst. f\"{u}r Wirtschaftsforschung},
title = {Effects of regional trade agreements using a static and dynamic gravity equation},
type = {Discussion papers // Ibero America Institute for Economic Research},
url = {http://hdl.handle.net/10419/27439},
year = {2006}
}
