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What is Political Factors in Trade Analysis about?

The document discusses factors that are important to consider when estimating trade relationships but are often omitted from gravity models of trade, such as political, historical, and investment factors. It provides examples of how political alliances increase trade, while conflicts and wars decrease trade. It also discusses evidence that membership in a political union even more strongly increases trade between geographical regions, as seen in the high levels of trade between Canadian provinces compared t

Author

Norristiyo Chokro Widagdo

Language

EN