Felbermayr, Gabriel; Yotov, Yoto V. - 2021 - This draft: March 21, 2021
studies argue that the gravity model of trade fails when confronted with bilateral trade balances data, dubbing this "The … that the gravity model explains bilateral trade balances well. We also uncover a new property of the structural … also identify sectors (e.g., Mining and Services), where the modeling of the direct bilateral trade costs in the gravity …