The Mistreated Model: Some Technical Comments on Porojan's Paper on 'Trade Flows and Spatial Effects'

Ron Johnston, Les Hepple, Tony Hoare, Kelvyn Jones and Paul Plummer

Open Economies Review, 2003, vol. 14, issue 1, 14 pages

Abstract: The paper by Porojan on 'Trade flows and spatial effects' in a recent issue of this journal is criticized on three methodological grounds: it includes two of the gravity model independent variables as relative rather than absolute numbers; the dummy variables included are not binary but interval; and the 'sample' of countries creates a non-normal distribution of inter-country distances, undoubtedly creating heteroscedasticity problems. Because of these three problems, the model is mis-specified, and the results thereby obtained are unreliable. Copyright Kluwer Academic Publishers 2003

Keywords: trade; gravity model; mis-specification (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (3)

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DOI: 10.1023/A:1021282731314

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