Felbermayr, Gabriel; Gröschl, Jasmin - In: European Economic Review 58 (2013) C, pp. 18-30
Natural disasters affect bilateral trade. We use this fact to generalize the instrumental variables strategy of Frankel and Romer (1999) to a panel setup. This allows revisiting an old question: Does openness cause per capita GDP? We work with a modified gravity framework in which we interact...