Since the early seventies an increasing attention has been paid to the impact environmental policy might have on foreign trade. One of the most important issues is whether countries with relatively strict environmental regulations tend to experience a deterioration of international...

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-implement generalised method of moments estimator that avoids the issues associated with the usual fixed effects...