Scott L. Baier

TL;DR: In this paper, the authors address the endogeneity of free trade agreements using instrumental-variable (IV) techniques, control function (CF) techniques and panel-data techniques; IV and CF approaches do not adjust for endogeneity well, but a panel data approach does.

TL;DR: Hummels and Levinsohn as mentioned in this paper investigated the relative effects of transport-cost reductions, tariff liberalization, and income convergence on the growth of world trade among several OECD countries between the late 1950s and the late 1980s.

TL;DR: Using a Taylor-series expansion, this article solved a simple reduced-form gravity equation revealing a transparent theoretical relationship among bilateral trade flows, incomes, and trade costs, based upon the model in Anderson and van Wincoop.

TL;DR: The authors provided the first systematic empirical analysis of the economic determinants of the formation of free trade agreements and of the likelihood of FTAs between pairs of countries using a qualitative choice model.

TL;DR: In this article, the authors provided the first systematic empirical analysis of the economic determinants of the formation of free trade agreements (FTAs) and of the likelihood of FTAs between pairs of countries using a qualitative choice model based on a general equilibrium theoretical model of world trade with two factors of production, two monopolistically-competitive product markets, and explicit intercontinental and intra-continental transportation costs among multiple countries on multiple continents.