PPML Regression: robustness checks

PPML Regression: robustness checks

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Modern Preferential Trade Agreements (PTAs) extend beyond simple tariff reductions, incorporating a range of provisions that emphasize deeper commitments related to non-tariff barriers and behind-the-border policies. This complexity complicates the assessment of their impacts on agricultural trade. By integrating data from the Deep Trade Agreements...

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Context 1
... disparities in technological advancements and production efficiency can also contribute to asymmetrical bilateral trade costs. In the estimation presented in columns (1) and (2) of Table 2, we employ directional pair fixed effects ( − → µ ij ) in place of country-pair fixed effects (µ ij ) to model asymmetric time-invariant trade costs 5 . Comparing these results with those in Table 1 reveals that they are analogous. ...
Context 2
... mitigate this bias, estimations are conducted at 3-year intervals as a set of a robustness analysis 6 . Columns (3) and (4) of Table 2 present the estimation results relevant to this application, replicating the specifications from columns (3) and (4) of Table 1, but using data at 3-year intervals. The gravity estimates remain consistent and robust. ...
Context 3
... construct internal trade flows as the difference between gross production value data and total exports 8 . Columns (5) and (6) of Table 2 show that introducing domestic trade flows results in a larger estimate of the Depth effect. This outcome provides indicative evidence that internal trade flows may be particularly vulnerable to trade diversion effects. ...

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