Modelling Export Activity in a Multicountry Economic Area: The APEC Case

Laszlo Matyas, Laszlo Konya and Mark N. Harris

No 267923, Department of Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics

Abstract: The gravity model has long been used for modelling and predicting trade flows. This paper generalises the gravity model allowing for proper representation of local and target country effects and also the business cycle(s). The new approach is based on a panel data framework (instead of a simple cross sectional or times series approach) where the additional information available from using both types of data is utilised to properly model all the specific effects. The model is then estimated for a panel of APEC countries.

Keywords: International Relations/Trade; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 14
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Persistent link: https://EconPapers.repec.org/RePEc:ags:monebs:267923

DOI: 10.22004/ag.econ.267923

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