Domestic technical measures such as SPS and TBTs can enhance import demand via information disclosure and quality improvement, or hamper foreign export supply via imposing sizeable compliance costs, or both. The traditional gravity equation model estimates the net effect of these measures on...

Gravity equation models are widely used in international trade to assess the impact of various policies on the patterns of trade. Although recent literature provides solid micro-foundations for the gravity equation model, there is no consensus on how to estimate a gravity equation model in the...

Domestic technical measures such as SPS and TBTs can enhance import demand via information disclosure and quality improvement, or hamper foreign export supply via imposing sizeable compliance costs, or both. The traditional gravity equation model estimates the net effect of these measures on...

Replaced with revised version of paper 07/02/10.