MULTI-DIMENSIONAL PANEL DATA GRAVITY MODEL: AN ANALYSIS OF APEC COUNTRIES

Year 2019, Volume: 10 Issue: 20, 1007 - 1027, 31.12.2019

Hatice Nazan Çağlar Elanur Türküz

https://doi.org/10.36543/kauiibfd.2019.043

Cited By: 2

Abstract

The traditional
gravity model of international trade has been
through many changes in order to develop and answer new research questions. Taking this development into
account this paper investigates a more enhanced panel data approach by extending
the classic approach by allowing for both indiviual and time effects to be
apparent in order to capture country specific and time effects with a
multidimensional panel data model for APEC countries. By using a three
dimensional panel gravity model with a least squares dummy variable approach we
were able to identify countries with stronger propensities to import and
export.

Keywords

International Trade, Gravity Model

References

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