We consider the estimation of the usual Gravity model of trade, which involves flows of trade, say exports, from country i to country j in time period t. We suggest an easy-to-impliment generalised method of moments estimator that avoids the issues associated with the usual fixed effects treatment of the unobserved heterogeneity in this type of models and at the same time provides consistent pa...

Estimation of the dynamic error components model is considered using two alternative linear estimators that are designed to improve the properties of the standard firstdifferenced GMM estimator. Both estimators require restrictions on the initial conditions process. Asymptotic efficiency comparisons and Monte Carlo simulations for the simple AR(1) model demonstrate the dramatic improvement in p...

The paper considers estimation and inference of time series GMM models where a subset of parameters are time varying. The magnitude of the time variation in the unstable parameters is such that efficient tests detect the instability with (possibly high) probability smaller than one, even in the limit. We show that for many forms of parameter instability and for a large class of GMM models, stan...

This paper aims to identify key challenges facing Iran and South Korea in their bilateral trade and investment relations. In particular, it is concerned with the policy implications which can be useful for policy makers and business people of both countries. For this purpose, we review and analyze the recent developments of the Iranian economy and bilateral trade and investment relations betwee...

The paper provides an ex-post analysis of the determinants within-country regional heterogeneity labour market impact COVID-19. By focussing on first wave pandemic in four largest euro area economies, it finds that propagation economic across regions cannot be explained by spread infections only. Instead, a region’s structure is significant driver observed heterogeneity. Moreover, our results s...

t his paper investigates the gain of bilateral trade between china and u.s. in manufacturing sectors when both countries play a role in asymmetric (biased) growth of  international trade. our model includes a special case of biased growth theory in international trade. we collected labor productivity, export and import data by using classification of manufacturing industries, for u.s. and china...

this paper analyses the impact of sanctions against iran in addition to other country-specific determinants on intra-industry trade between iran and shanghai cooperation organization (sco) countries over the period 1997-2013. by disentangling total intra-industry trade (iit) into horizontal and vertical iit and after investigating bilateral trade pattern between iran and sco countries, determin...

according to the recent literature, the expansion of intra-industry trade increases the intra-industrial excess job reallocation. based on lovely and nelson (2002), this study examined the hypothesis that marginal intra-industry trade has a positive effect on the excess job reallocation in iranian industries. therefore, we have employed a panel technique for iranian manufacturing industries at ...

The question of learning versus self-selection has dominated the micro-econometric literature on firm export decisions, without leading to any firm conclusions. In part this reflects the limited information content of the data typically used. In this paper we use survey data on UK firms to offer some new insights into this debate. Consistent with the literature we find that the impacts of expor...

Much trade liberalization involves large and small countries. This paper presents a formal comparison of the economic welfare effects for the small and large country from unilateral free trade by the small country, from a free trade agreement, and from preferential access to the large country’s market. I show that it matters for the welfare effects of these strategies whether the small country ...