The “regulatory Environment” is designed to measure the economy’s approach to regulations, taking the average of the transparency of government policy (WCY) and control of corruption (WBGI). “Service-sector Infrastructures” indicate the extent to which an economy has the necessary domestic infrastructure (such as telecommunications, financial intermediaries, and logistics firms) and networked information to improve efficiency and transform activities to enhance economic activities from “effect of internet on business” (GITR). We normalize each input into the range of 1 (lowest quality) to 7 (highest quality). We update the gravity model in Otsuki by augmenting the data set with more recent data up to the year 2010. We estimate the following gravity model by the random effects model of panel data estimation for 101 countries worldwide for the period of 2004-2010