Investor Presentaiton

The Model. ▸ For estimation of the gravity model, we have followed Frankel (1997), Sharma and Chua (2000) and Batra (2006). ▸ With adjustment to suit our needs the model is "augmented" in the sense that several conditioning variables that may affect trade have been included. ▸ Thus the gravity model of trade in this study is: In(Xij) = ßo + ẞ₁ In GDP ijt + ẞ₂ In PCGDP ijt + ẞ3 In TRGDP ijt + ẞ4 In REMOTE¿¡ + ß5LANG + ẞlnPOP ijt + ẞ7RTA + εijt An alterative to the above will take care of the per capita GDP differential as a variable instead of per capita GDP. (Will be discussed in the final paper).

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