2020
DOI: 10.2139/ssrn.3574477
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Trade Agreements and Latin American Trade (Creation and Diversion) and Welfare

Abstract: The Working Paper Series seeks to disseminate original research in economics and fi nance. All papers have been anonymously refereed. By publishing these papers, the Banco de España aims to contribute to economic analysis and, in particular, to knowledge of the Spanish economy and its international environment. The opinions and analyses in the Working Paper Series are the responsibility of the authors and, therefore, do not necessarily coincide with those of the Banco de España or the Eurosystem. The Banco de … Show more

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“… Two alternative methods to construct domestic trade flows for gravity estimations are to use GDP data (El Dahrawy & Timini, Forthcoming; Timini & Viani, 2020; Yotov, 2012) or to rely in input–output (I–O) linkages (Felbermayr et al, 2018; Felbermayr & Steininger, 2019; Larch et al, 2018). The main advantages of using gross production data over GDP data are (i) that this is consistent with the data on exports, which are also reported on a gross basis, and (ii) that this allows for construction of sectoral domestic trade flows.…”
mentioning
confidence: 99%
“… Two alternative methods to construct domestic trade flows for gravity estimations are to use GDP data (El Dahrawy & Timini, Forthcoming; Timini & Viani, 2020; Yotov, 2012) or to rely in input–output (I–O) linkages (Felbermayr et al, 2018; Felbermayr & Steininger, 2019; Larch et al, 2018). The main advantages of using gross production data over GDP data are (i) that this is consistent with the data on exports, which are also reported on a gross basis, and (ii) that this allows for construction of sectoral domestic trade flows.…”
mentioning
confidence: 99%