where XAij is the average flow of trade from country i (origin) to country j (the destination) for
the period 1998-2000 and L stands for logarithm (see appendix 1 for description of he
variables). We measured this variable as amount of imports from country i as recorded by
country j’s import figure. This measurement takes care of transportation costs, as imports are
recorded in cif values. Furthermore, countries tend to monitor their imports more than their
exports, hence our procedure, we believe, will be more accurate than an approach based on
export from the origin. The variables LGDPIA and LGDPJA are the logarithm gross domestic
product (GDP) figures of the exporting country and importing country, respectively.
LPCGDPIA and LPCGDPJA are per capita GDP of the reporter (i), and the partner (j), in
logarithm. In the same manner, though not reflected in Equation 2, LPOPIA and LPOPJA were
defined as population figures for country j and country i, respectively, in logarithm.
where XAij is the average flow of trade from country i (origin) to country j (the destination) forthe period 1998-2000 and L stands for logarithm (see appendix 1 for description of hevariables). We measured this variable as amount of imports from country i as recorded bycountry j’s import figure. This measurement takes care of transportation costs, as imports arerecorded in cif values. Furthermore, countries tend to monitor their imports more than theirexports, hence our procedure, we believe, will be more accurate than an approach based onexport from the origin. The variables LGDPIA and LGDPJA are the logarithm gross domesticproduct (GDP) figures of the exporting country and importing country, respectively.LPCGDPIA and LPCGDPJA are per capita GDP of the reporter (i), and the partner (j), inlogarithm. In the same manner, though not reflected in Equation 2, LPOPIA and LPOPJA weredefined as population figures for country j and country i, respectively, in logarithm.
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