Chapter 12 Technical Appendix on the Regional Economic Integration Database

The purpose of this appendix is to provide documentation of the data sources and methodology underlying the empirical tests done in Chapters 2, 5, 6, 8, and 10 of the volume; the actual databases can be downloaded from the homepage of the Indiana University Center for International Business Education and Research (http://www.kelley.indiana.edu/GPO/research.cfm). The databases for multinational enterprises used in Chapters 7 and 9 are described in Chapter 9 and are not covered in this appendix. The gravity equation applied to international trade uses, among the explanatory variables, basic factors, such as income and distance, and other factors, such as cultural and institutional variables. The basic factors are treated in the first section and other factors in the second.