Abstract
The traditional gravity model of international trade has been through many changes in order to develop and answer new research questions . Taking this development into account this paper investigates a more enhanced panel data approach by extending the classic approach by allowing for both indiviual and time effects to be apparent in order to capture country specific and time effects with a multidimensional panel data model for APEC countries. By using a three dimensional panel gravity model with a least squares dummy variable approach we were able to identify countries with stronger propensities to import and export.
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