Missing data in the structural gravity: estimation bias of due to the omission of internal trade

In the last decade, there has been an intense development in trade models aiming to explain the determinants of bilateral trade. A seminal theoretical and methodological contribution is Anderson and van Wincoop (2003), who introduced the concept of multilateral resistance and structural gravity. How...

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Detalles Bibliográficos
Autores principales: Vaillant, Marcel, Flores, Manuel, Moncarz, Pedro Esteban
Formato: Artículo revista
Lenguaje:Inglés
Publicado: Facultad de Ciencias Económicas - Universidad Nacional de Córdoba 2019
Materias:
Structural gravity
Zero trade
Missing data
F10
F17
Acceso en línea:https://revistas.unc.edu.ar/index.php/DTI/article/view/25881
Aporte de:
Documentos de Trabajo de Investigación de la Facultad de Ciencias Económicas (DTI-FCE) de Universidad Nacional de Córdoba
id I10-R368-article-25881
record_format ojs
spelling I10-R368-article-258812025-04-06T05:32:48Z Missing data in the structural gravity: estimation bias of due to the omission of internal trade Vaillant, Marcel Flores, Manuel Moncarz, Pedro Esteban Structural gravity Zero trade Missing data F10 F17 In the last decade, there has been an intense development in trade models aiming to explain the determinants of bilateral trade. A seminal theoretical and methodological contribution is Anderson and van Wincoop (2003), who introduced the concept of multilateral resistance and structural gravity. However, there is still an important gap between the theoretical developments of the structural gravity model and its empirical applications. The main two issues are: the presence of zeros in bilateral trade and the missing data problem of own production oriented to the own market. The presence of zero trade has been considered in Santos Silva and Tenreyro (2006) and Helpman, Melitz and Rubinstein (2008), but the effects of the lack of internal transactions in the estimation of the gravity model has not been much studied, even when its relevance can be thought to be of greater importance, because the great heterogeneity across countries in terms of their degrees of openness. The objective of the paper is, with state of the art tools, analyze and characterize the consequence of the omission of internal transactions in the estimation of trade proximities (trade costs) and on the values of multilateral resistances, which in turn will affect the comparative static effects derived from different trade policy measures.   Facultad de Ciencias Económicas - Universidad Nacional de Córdoba 2019-10-31 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/DTI/article/view/25881 Documentos de Trabajo de Investigación de la Facultad de Ciencias Económicas (DTI-FCE); Núm. 5 (2019); 1-37 eng https://revistas.unc.edu.ar/index.php/DTI/article/view/25881/29784 Derechos de autor 2019 Documentos de Trabajo de Investigación de la Facultad de Ciencias Económicas (DTI-FCE) https://creativecommons.org/licenses/by-nc-nd/4.0
institution Universidad Nacional de Córdoba
institution_str I-10
repository_str R-368
container_title_str Documentos de Trabajo de Investigación de la Facultad de Ciencias Económicas (DTI-FCE)
language Inglés
format Artículo revista
topic Structural gravity
Zero trade
Missing data
F10
F17
spellingShingle Structural gravity
Zero trade
Missing data
F10
F17
Vaillant, Marcel
Flores, Manuel
Moncarz, Pedro Esteban
Missing data in the structural gravity: estimation bias of due to the omission of internal trade
topic_facet Structural gravity
Zero trade
Missing data
F10
F17
author Vaillant, Marcel
Flores, Manuel
Moncarz, Pedro Esteban
author_facet Vaillant, Marcel
Flores, Manuel
Moncarz, Pedro Esteban
author_sort Vaillant, Marcel
title Missing data in the structural gravity: estimation bias of due to the omission of internal trade
title_short Missing data in the structural gravity: estimation bias of due to the omission of internal trade
title_full Missing data in the structural gravity: estimation bias of due to the omission of internal trade
title_fullStr Missing data in the structural gravity: estimation bias of due to the omission of internal trade
title_full_unstemmed Missing data in the structural gravity: estimation bias of due to the omission of internal trade
title_sort missing data in the structural gravity: estimation bias of due to the omission of internal trade
description In the last decade, there has been an intense development in trade models aiming to explain the determinants of bilateral trade. A seminal theoretical and methodological contribution is Anderson and van Wincoop (2003), who introduced the concept of multilateral resistance and structural gravity. However, there is still an important gap between the theoretical developments of the structural gravity model and its empirical applications. The main two issues are: the presence of zeros in bilateral trade and the missing data problem of own production oriented to the own market. The presence of zero trade has been considered in Santos Silva and Tenreyro (2006) and Helpman, Melitz and Rubinstein (2008), but the effects of the lack of internal transactions in the estimation of the gravity model has not been much studied, even when its relevance can be thought to be of greater importance, because the great heterogeneity across countries in terms of their degrees of openness. The objective of the paper is, with state of the art tools, analyze and characterize the consequence of the omission of internal transactions in the estimation of trade proximities (trade costs) and on the values of multilateral resistances, which in turn will affect the comparative static effects derived from different trade policy measures.  
publisher Facultad de Ciencias Económicas - Universidad Nacional de Córdoba
publishDate 2019
url https://revistas.unc.edu.ar/index.php/DTI/article/view/25881
work_keys_str_mv AT vaillantmarcel missingdatainthestructuralgravityestimationbiasofduetotheomissionofinternaltrade
AT floresmanuel missingdatainthestructuralgravityestimationbiasofduetotheomissionofinternaltrade
AT moncarzpedroesteban missingdatainthestructuralgravityestimationbiasofduetotheomissionofinternaltrade
first_indexed 2024-09-03T22:58:11Z
last_indexed 2025-05-10T05:31:44Z
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