Economics, Econometrics and Finance
3 years ago

Trade Agreements Transformed: Domestic Trade Measurement Shapes Global Impact

SSRN Electronic Journal
Structural Gravity and Trade Agreements: Does the Measurement of Domestic Trade Matter?
Rodolfo G. Campos, Jacopo Timini, Elena Vidal Muñoz

Paper Summary

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The article compares different ways of measuring domestic trade in economic models. Including domestic trade helps estimate certain parameters accurately. The researchers found that the three common methods of measuring domestic trade lead to similar results in structural gravity models.