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What is Gravity Model Trade Policy Analysis about?

This paper critiques the use of interval or averaged data in estimating gravity equations for trade-policy effects, advocating instead for the use of consecutive-year data to capture dynamic adjustments. The authors find that using annual data provides more accurate estimates of the impacts of Free Trade Agreements (FTAs), revealing a non-linear response pattern that evolves over approximately 10 years. The study identifies three distinct phases of FTA impact on trade: anticipation, growth, and maturity, hi

Author

Duyên Nguyễn Thị Ngọc

Language

EN