Work detail

A Gravity Approach to Modelling German Exports: The Role of Institutions

Author: Mgr. Petra Hadrová
Year: 2015 - summer
Leaders: Mgr. Božena Bobková
Consultants:
Work type: EEI & EP
Masters
Language: English
Pages: 68
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/152275/
Abstract: The purpose of this thesis is to implement the gravity model approach to identify and quantify
determinants of bilateral trade flows of Germany and its trading partners, while focusing on
the effect of institutions. Based on various gravity model techniques (clustered pooled OLS,
Poisson Pseudo-Maximum Likelihood estimation, Hausman and Taylor estimation and
Instrumental Variables regression), we have confirmed that the quality of institutions have a
signifiant and positive effect on German exports. Depending on model specification and
estimation technique, some institutions seem to effect German export more than others. We
see the Hausman and Taylor estimator advisable for addressing endogeneity of institutions

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