Question: Design a gravity style specification for export flows where you are particularly interested in examining : The existence of a common border, the effect of

Design a gravity style specification for export flows where you are particularly interested in examining :

  1. The existence of a common border,
  2. the effect of a bilateral trade agreement, and
  3. the impact of exchange rate regime

How might you capture the impact of these variables. What is the likely impact of these variables. explain all the terms in your specifications.

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