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Coefficients on Exporter GDP, Importer Population and Importer per capita GDP

Coefficients on Exporter GDP, Importer Population and Importer per capita GDP

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Gravity models have been extensively used as workhorse models to study the determinants of international trade. While most of the literature has focused on trade in manufacturing, a recent literature has emerged that uses gravity models to study international trade in services. Despite showing that gravity equations are well suited to studying trad...

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... stark finding is that the coefficients on exporter GDP, importer population, and per capita importer GDP become significantly lower when BLINK is included in our specifications. All six panels in Figure 6 illustrate this. BLINK tends to increase bilateral trade, and, as Table 10 shows, BLINK09 is positively correlated with all three variables. ...

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