MONCARZ PEDRO ESTEBAN
Congresos y reuniones científicas
Título:
Missing data in the structural gravity: estimation bias due to the omission of internal trade
Autor/es:
VAILLANT, MARCEL; FLORES, MANUEL; MONCARZ, PEDRO ESTEBAN
Lugar:
Montevideo
Reunión:
Seminario; Seminario Anual dECON; 2019
Institución organizadora:
Departamento de Economía, Universidad de la República
Resumen:
In the last decadethere has been an intense development in trade models aiming to explain thedeterminants of bilateral trade. A seminal theoretical and methodologicalcontribution is Anderson and van Wincoop (2003), who introduced the concept ofmultilateral resistance and structural gravity. However, there is still animportant gap between the theoretical developments of the structural gravitymodel and its empirical applications. The main two issues are: the presence ofzeros in bilateral trade and the missing data problem of own productionoriented to the own market. The presence of zero trade has been considered in SantosSilva and Tenreyro (2006) and Helpman, Melitz and Rubinstein (2008), but the effectsof the lack of internal transactions in the estimation of the gravity model hasnot been much studied, even when its relevance can be thought to be of greaterimportance, because the great heterogeneity across countries in terms of theirdegrees of openness. The objective of the paper is, through the use of state ofthe art tools, analyze and characterize the consequence of the omission ofinternal transactions in the estimation of trade proximities (trade costs) andon the values of multilateral resistances, which in turn will affect the comparativestatic effects derived from different trade policy measures.
