Abstract
This paper suggests using a trick when estimating regional trading bloc effects on bilateral trade volumes with panel data. Trading bloc dummies exhibit small variation over time. They should enter the specification twice, once in their original form and once as the between-effects component. Then, one obtains longrun and short-run effects of trading blocs on trade volumes. The paper suggests three different models to tackle this problem. JEL no. C33, F14, F15
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Egger, P. Estimating regional trading bloc effects with panel data. Rev. World Econ. 140, 151–166 (2004). https://doi.org/10.1007/BF02659714
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DOI: https://doi.org/10.1007/BF02659714