Das Handelsvolumen der ostdeutschen Bundesländer mit Polen und Tschechien im Zuge der EU-Osterweiterung: Ergebnisse auf Basis eines Gravitationsmodells

Alecke, Björn; Mitze, Timo; Untiedt, Gerhard

doi:10.3790/vjh.72.4.565

Cited by 7 publications

(2 citation statements)

References 9 publications

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“…<< insert Table 1 about here >> 5 Where we excluded Malta and Cyprus due to their specific characteristics as 'island' economies, further we treat Belgium and Luxembourg as one single economy mainly due to statistical data reasons.…”

Section: Data and Stylized Facts Of German Trade-fdi Activitymentioning

confidence: 99%

Trade-FDI Linkages in a System of Gravity Equations for German Regional Data

2009

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Trade-FDI Linkages in a System of Gravity Equations for German Regional DataAbstract We analyse the nature of German trade-FDI linkages within the EU27 based on a simultaneous equation gravity approach for imports, exports, in-and outward FDI stocks. We adopt both a Hausman-Taylor (1981) IV approach (3SLS-GMM) and rival non-IV estimation (the system extension to the Fixed Effects Vector Decomposition model recently proposed by Plümper & Tröger, 2007). Turning to the results, both estimators give empirical support for our chosen gravity setup as an appropriate framework in explaining German trade and FDI activity. Looking carefully at cross-variable linkages we basically find substitutive links between trade flows and outward FDI in line with earlier empirical evidence for Germany. Building upon German state level data we are also able to analyse the sensitivity of the results for regional sub-samples. The latter disaggregation hints at structural differences among the trade and FDI activity of the two West and East German macro regions on the one hand, and also their interaction with the 'core' EU15 member states opposed to the overall EU27 aggregate on the other hand. Taking West German-EU27 trade & FDI as an example, the identified pairwise linkages closely follow the theoretical predictions of New Trade Theory models as in Baldwin & Ottaviano (2001): That is, when trade is merely of intra-industry type with non-zero trade costs, we observe export replacement effects of FDI. However, at the same time outward FDI stimulates trade via reverse good imports. For the West German-EU15 sub-sample we even reveal complementaries among export and outward FDI activity. This strongly advocates to care for the regional dimension in analysing cross-variable linkages of trade and FDI.JEL Classification: C33, F14, F21

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Section: Data and Stylized Facts Of German Trade-fdi Activitymentioning

confidence: 99%

Trade-FDI Linkages in a System of Gravity Equations for German Regional Data

2009

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“…We take up the research question in Alecke et al (2003Alecke et al ( & 2007 and specify trade equations for regional entities. In particular, we aim to re-estimate gravity models for export flows among German states (NUTS1-level) and its EU27 trading partners using an updated database for the period 1993-2005.…”

Section: Empirical Application: Trade Estimates For German Regional Datamentioning

confidence: 99%

Endogeneity in Panel Data Models with Time-Varying and Time-Fixed Regressors: To IV or Not IV?

Mitze

2009

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily reflect those of the editors. Terms of use: Documents in AbstractWe analyse the problem of parameter inconsistency in panel data econometrics due to the correlation of exogenous variables with the error term. A common solution in this setting is to use Instrumental-Variable (IV) estimation in the spirit of Hausman-Taylor (1981). However, some potential shortcomings of the latter approach recently gave rise to the use of non-IV two-step estimators. Given their growing number of empirical applications, we aim to systematically compare the performance of IV and non-IV approaches in the presence of time-fixed variables and right hand side endogeneity using Monte Carlo simulations, where we explicitly control for the problem of IV selection in the Hausman-Taylor case. The simulation results show that the HausmanTaylor model with perfect-knowledge about the underlying data structure (instrument orthogonality) has on average the smallest bias. However, compared to the empirically relevant specification with imperfect-knowledge and instruments chosen by statistical criteria, the non-IV rival performs equally well or even better especially in terms of estimating variable coefficients for timefixed regressors. Moreover, the non-IV method tends to have a smaller root mean square error (rmse) than both Hausman-Taylor models with perfect and imperfect knowledge about the underlying correlation between r.h.s variables and residual term. This indicates that it is generally more efficient. The results are roughly robust for various combinations in the time and cross-section dimension of the data. JEL Classification: C15, C23, C52

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Trade-FDI Linkages in a Simultaneous Equations System of Gravity Models for German Regional Data

Mitze¹

2012

Lecture Notes in Economics and Mathematical Systems

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Das Handelsvolumen der ostdeutschen Bundesländer mit Polen und Tschechien im Zuge der EU-Osterweiterung: Ergebnisse auf Basis eines Gravitationsmodells

Cited by 7 publications

References 9 publications

Trade-FDI Linkages in a System of Gravity Equations for German Regional Data

Trade-FDI Linkages in a System of Gravity Equations for German Regional Data

Endogeneity in Panel Data Models with Time-Varying and Time-Fixed Regressors: To IV or Not IV?

Trade-FDI Linkages in a Simultaneous Equations System of Gravity Models for German Regional Data

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