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Coefficients on Exporter GDP and Importer per capita GDP

Coefficients on Exporter GDP 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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Context 1
... note that the estimated coefficients on these variables are consistent with our theoretical model in terms of ranking. The exporter GDP coefficients for manufacturing and services are plotted without BLINK09 being included in Figure 5(a) over the period 2002-2015, while the results with BLINK09 included are illustrated in Figure 5(b) for years 2009 to 2015. With some exceptions, the estimated coefficients are higher for manufacturing than services. ...
Context 2
... note that the estimated coefficients on these variables are consistent with our theoretical model in terms of ranking. The exporter GDP coefficients for manufacturing and services are plotted without BLINK09 being included in Figure 5(a) over the period 2002-2015, while the results with BLINK09 included are illustrated in Figure 5(b) for years 2009 to 2015. With some exceptions, the estimated coefficients are higher for manufacturing than services. ...
Context 3
... these coefficients are monotonically related to Armington elasticities, which, in turn, are inversely related to the degree of product differentiation, the ranking of the coefficients indirectly supports one of our basic premises that services are more nationally differentiated than manufactures. Figure 5(c) depicts the coefficients on importer per capita GDP in the specification without BLINK09. The numbers are again consistent with the theory: the elasticities of bilateral trade in services with respect to the importing country per capita GDP are greater, compared to that in manufacturing. ...
Context 4
... empirical model does not yield point estimates of the overall trade-cost elasticities for either product group. However, the magnitudes of these elasticities are monotonic with respect to the Armington elasticities that rank the elasticities of bilateral trade with respect to the size of a country as an exporter, whose point estimates are indeed available: see Table 9 and Figure 5. ...

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