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A note on the proper econometric specification of the gravity equation
Abstract This paper sheds some light on the problems associated with random effects gravity approaches. Arguments for the superiority of a fixed effects model are given both along intuitive andExpand
An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials
This paper presents an AR(1) model in the spirit of Hausman and Taylor zero differences between actual and in-sample predicted trade flows. Large systematic differences between observed and in-sampleExpand
Estimating models of complex FDI: Are there third-country effects?
The recent general equilibrium theory of trade and multinationals emphasizes the importance of third countries and the complex integration strtegies of multinationals. Little has been done to testExpand
A knowledge-and-physical-capital model of international trade flows, foreign direct investment, and multinational enterprises
Abstract This paper addresses two important issues at the nexus of the literatures on international trade, foreign direct investment (FDI), foreign affiliate sales (FAS), and multinationalExpand
Going NUTS: The Effect of EU Structural Funds on Regional Performance
The European Union (EU) provides grants to disadvantaged regions of member states to allow them to catch up with the EU average. Under the Objective 1 scheme, NUTS2 regions with a per capita GDPExpand
A generalized design for bilateral trade flow models
Abstract This paper suggests a full interaction effects design to analyze bilateral trade flows. This is illustrated with an unbalanced panel of bilateral trade between the triad (EU15, USA andExpand
The Trade Effects of Endogenous Preferential Trade Agreements
Recent work by Anderson and van Wincoop (2003) establishes an empirical modelling strategy which takes full account of the structural, non-(log-)linear impact of trade barriers on trade in new tradeExpand
Endogenous product versus process innovation and a firm’s propensity to export
This article provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful marketExpand
Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects
Transfers to individuals, firms, and regions are often regulated by threshold rules, giving rise to a regression discontinuity design. An example are transfers provided by the European Commission toExpand
Evidence on corruption as an incentive for foreign direct investment
Abstract This paper assesses the relationship between corruption and inward foreign direct investment (FDI). Previous research has presumed that corruption directly enters the cost function ofExpand