Gravity Estimation: Best Practices and Useful Approaches
Year: 2025
Type: article
Abstract: The gravity model has proven to be an exceptionally successful tool for empirically studying international trade. However, deriving good estimates requires careful consideration of the econometric specification being used. Common applications of the model are prone to a variety of biases and identification challenges that should not be overlooked. This paper describes notable approaches for mitigating these issues and provides guidance on how to produce high quality gravity estimates. It also demonstrates how to implement these techniques in Stata
DOI: 10.71476/pp3h-ww96
Author: Herman, Peter
Institution: United States International Trade Commission
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6959018199