Keywords
unbiasedness, consistency and efficiency of econometric estimates
panel regressions with fixed and random effects
methods for estimating panel regressions
How to Cite
Abstract
In this article, the authors critically analyze the existing econometric approaches to estimating gravity models of exports from the point of view of solving such problems as taking into account zero observations, bias, inconsistency and inefficiency of estimates. As a result, the authors come to the conclusion that the method of Poisson pseudo-maximum-likelihood estimation (Poisson pseudo-maximum-likelihood, PPML) is the most preferable method for estimating the gravity export model of the Republic of Uzbekistan.
References
J. Anderson, E. van Wincoop. Gravity with Gravitas: A Solution to the Border Puzzle. // American economic review, vol. 93, no. 1, 2003, pp. 170-192.
Wooldridge, J. M. Fixed-Effects and Related Estimators for Correlated Random-Coefficient and Treatment-Effect Panel Data Models // Review of Economics and Statistics, 2005, 87(2), 385–390.
Baltagi, B. H., Egger, P., & Pfaffermayr, M. Special issue on the estimation of gravity models of bilateral trade: Editors’ introduction. // Empirical Economics 50 (1), 2015, pp. 1-4.
Baltagi, B. H., Egger, P., & Pfaffermayr, M. A generalized design for bilateral trade flow models. Economics Letters, 80(3), 2003, 391–397.
Hausman J.A., Taylor W.E. Panel Data and Unobservable Individual Effect. // Econometrica, 1981, Vol. 49, pp. 1377–1398.
Serlenga, L., & Shin, Y. Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors. // Journal of Applied Econometrics, 22(2), 2007, pp. 361–381.
Helpman E., Melitz M., Rubinstein Y. Estimating Trade Flows: Trading Partners and Trading Volumes // Quarterly Journal of Economics, 2008, vol. 123, pp. 441–487.
J. M. C. Santos Silva, Silvana Tenreyro. The Log of Gravity // The Review of Economics and Statistics, 2006, 88 (4): 641–658.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright (c) 2023 Economics and education