MACRO AND MICRO DETERMINANTS OF TRADE IN SERVICES: THE CASE OF BRITISH SERVICE TRADERS
Abstract
This paper focuses on the macro and micro-level
determinants of trade in services in the United Kingdom. The importance of different
determinants has been investigated within the gravity framework in many
studies. However, the nature of the data requires estimation approaches other
than the Ordinary Least Squares (OLS). To estimate the gravity equation,
besides the OLS, the Poisson Pseudo-Maximum Likelihood (PPML) and Threshold Tobit have been used. The results confirm that,
among the three different estimation approaches, the PPML is the preferred
model since it is able to deal with the existence of zero trade values and
heteroskedaticity problem in the data. The findings based on the disaggregated
level data show that the coefficients of the trade determinants change
considerably, suggesting that the policies adopted according to the results of
the country-level analyses do not fit all of the trading firms.
Keywords
References
- -
Details
Primary Language
English
Subjects
-
Journal Section
Conference Paper
Authors
Özgül Bilici
*
Türkiye
Publication Date
December 31, 2017
Submission Date
December 10, 2017
Acceptance Date
December 28, 2017
Published in Issue
Year 2017 Volume: 15 Number: 1