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dc.contributor.authorMartínez-Zarzoso, Inmaculadaen_US
dc.contributor.authorNowak-Lehmann D., Felicitasen_US
dc.contributor.authorHorsewood, Nicholasen_US
dc.description.abstractThis 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.en_US
dc.publisher|aIbero-Amerika-Inst. für Wirtschaftsforschung|cGöttingenen_US
dc.relation.ispartofseries|aDiscussion papers // Ibero America Institute for Economic Research|x149en_US
dc.titleEffects of regional trade agreements using a static and dynamic gravity equationen_US
dc.type|aWorking Paperen_US

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