Dependent Variable: Total Imports
| Explanatory variable | OLS (1) | FE (2) | RE (3) | FE (year) (4) | RE (year) (5) |
|---|---|---|---|---|---|
| Total GDP | 2.590*** (0.097) | 2.115*** (0.230) | 2.425*** (0.263) | 1.910*** (0.186) | 2.093*** (0.200) |
| Similarity index | 1.395*** (0.028) | 0.559*** (0.203) | 1.094*** (0.122) | 0.565*** (0.197) | 1.181*** (0.112) |
| Sum of K/L ratio | 0.159* (0.061) | 0.199 (0.334) | 0.642** (0.254) | −0.040 (0.385) | 0.402 (0.258) |
| Difference of K/L ratio | 0.253*** (0.046) | −0.061 (0.069) | −0.013 (0.073) | −0.039 (0.072) | 0.021 (0.073) |
| Sum of T/L ratio | 0.047 (0.591) | −1.716* (0.984) | 0.390 (0.244) | −1.689* (1.012) | 0.421* (0.248) |
| Difference of T/L ratio | 0.356*** (0.054) | − 0.118 (0.191) | −0.139 (0.147) | −0.121 (0.197) | −0.025 (0.147) |
| Distance | −0.943*** (0.090) | (omitted) | −1.326*** (0.333) | (omitted) | −1.338*** (0.328) |
| RTA-APTA | −0.980*** (0.159) | −0.364* (0.205) | −0.600** (0.240) | −0.382* (0.214) | −0.654** (0.263) |
| RTA-HONGKONG | 0.624** (0.247) | −1.759*** (0.141) | −1.827*** (0.132) | −1.912*** (0.158) | −1.967*** (0.140) |
| RTA-MACAO | −0.481 (0.377) | −1.925*** (0.227) | −2.459*** (0.135) | −1.998*** (0.231) | −2.551*** (0.145) |
| RTA-ASEAN | 1.060*** (0.128) | −0.301 (0.376) | −0.293 (0.390) | −0.333 (0.150) | −0.375 (0.156) |
| RTA-CHILE | 2.438*** (0.114) | (omitted) | 3.221*** (0.377) | (omitted) | 3.062*** (0.361) |
| RTA-PAKISTAN | −0.470*** (0.176) | −1.449*** (0.290) | −1.214*** (0.250) | −1.498*** (0.297) | −1.280*** (0.253) |
| RTA-NEWZEALAND | 1.448*** 11111(0.124) | −0.430*** (0.149) | −0.162 (0.129) | −0.544*** (0.165) | −0.263** (0.126) |
| RTA-PERU | 1.848*** (0.146) | −0.530*** (0.144) | −0.378*** (0.114) | −0.618*** (0.137) | −0.485*** (0.110) |
| RTA-COSTA RICA | 4.386*** (0.251) | 0.796*** (0.220) | 1.337*** (0.209) | 0.737*** (0.221) | 1.348*** (0.206) |
| RTA – SWITZERLAND | 2.251*** (0.080) | 0.478*** (0.122) | 0.394*** (0.120) | 0.527*** (0.147) | 0.422*** (0.127) |
| RTA – ICELAND | −1.097*** (0.144) | −1.101*** (0.172) | −0.802*** (0.136) | −1.081*** (0.192) | −0.757*** (0.139) |
| WTO | 0.481*** (0.126) | 0.165 (0.132) | 0.342** (0.144) | 0.284 (0.540) | 0.867** (0.425) |
| Constant | −9.158*** (1.166) | −24.027*** (3.915) | −5.563 (3.861) | −22.489*** (3.765) | −2.584*** (2.141) |
| F-test (P-value) | 25.30 (0.0000) | 25.50 (0.0000) | |||
| LM-test (P-value) | 5904.34 (0.0000) | 6083.48 (0.000) | |||
| Hausman test (P-value) | 119.57 (0.0000) | ||||
| R2 overall | 0.7135 | 0.1801 | 0.6844 | 0.1675 | 0.6932 |
| R2 within | 0.4320 | 0.4164 | 0.4443 | 0.4270 | |
| R2 between | 0.1238 | 0.7580 | 0.1089 | 0.7695 | |
| Number of Observations | 2841 | 2841 | 2841 | 2841 | 2841 |
| RETEST (p-value) | (0.0000) | (0.6031) | (0.0226) | (0.4223) | (0.0101) |
Dependent Variable: Total Exports
| Explanatory variable | OLS (1) | FE (2) | RE (3) | FE (year) (4) | RE (year) (5) |
|---|---|---|---|---|---|
| Total GDP | 2.337*** (0.080) | 2.324*** (0.248) | 2.337*** (0.226) | 1.996*** (0.150) | 2.005*** (0.136) |
| Similarity index | 0.920*** (0.013) | 0.833*** (0.093) | 0.858*** (0.062) | 0.870*** (0.090) | 0.903*** (0.061) |
| Sum of K/L ratio | 0.081* (0.048) | 0.263 (0.146) | 0.264 (0.171) | −0.040 (0.134) | −0.001 (0.117) |
| Difference of K/L ratio | 0.087*** (0.024) | −0.003 (0.038) | −0.001 (0.037) | 0.024 (0.495) | 0.024 (0.034) |
| Sum of T/L ratio | −0.446*** (0.053) | −0.320 (0.572) | −0.344 (0.233) | −0.035 (0.540) | −0.271 (0.223) |
| Difference of T/L ratio | 0.231*** (0.033) | 0.123 (0.144) | 0.144 (0.128) | 0.112 (0.132) | 0.139 (0.121) |
| Distance | −0.460*** (0.056) | (omitted) | −0.664*** (0.206) | (omitted) | −0.747*** (0.205) |
| RTA-APTA | −0.369*** (0.086) | −0.450** (0.218) | −0.451** (0.200) | −0.446** (0.207) | −0.449** (0.190) |
| RTA-HONGKONG | 2.760*** (0.127) | −0.670*** (0.108) | −0.575*** (0.084) | −0.860*** (0.089) | −0.747*** (0.068) |
| RTA-MACAO | 0.187 (0.235) | −1.606*** (0.118) | −1.577*** (0.078) | −1.706*** (0.113) | −1.669*** (0.077) |
| RTA-ASEAN | 0.418*** (0.087) | −0.306 (0.186) | −0.291 (0.179) | −0.410** (0.175) | −0.389** (0.170) |
| RTA-CHILE | 1.052*** (0.078) | (omitted) | 1.221*** (0.227) | (omitted) | 1.216*** (0.230) |
| RTA-PAKISTAN | −0.008 (0.092) | −0.221 (0.217) | −0.191 (0.195) | −0.347* (0.204) | −0.318* (0.188) |
| RTA-NEWZEALAND | 0.520*** (0.057) | −0.281*** (0.093) | −0.262*** (0.093) | −0.440*** (0.073) | −0.407*** (0.069) |
| RTA-PERU | 0.426*** (0.067) | 0.363*** (0.067) | 0.361*** (0.061) | 0.374*** (0.066) | 0.356*** (0.056) |
| RTA-COSTA RICA | 0.215* (0.121) | −0.154* (0.093) | −0.128 (0.090) | −0.080 (0.091) | −0.600 (0.087) |
| RTA – SWITZERLAND | −1.310*** (0.045) | −1.088*** (0.095) | −1.101*** (0.087) | −1.057*** (0.081) | −1.048*** (0.072) |
| RTA – ICELAND | −0.776*** (0.077) | −0.255** (0.101) | −0.253*** (0.094) | −0.237*** (0.082) | −0.206*** (0.070) |
| WTO | 0.205** (0.080) | 0.136* (0.080) | 0.140* (0.082) | 0.940*** (0.278) | 0.853*** (0.238) |
| Constant | −13.999*** (0.732) | −18.176*** (2.125) | −12.221*** (2.611) | −15.355*** (1.652) | −7.578*** (2.141) |
| F-test (P-value) | 68.43 (0.0000) | 74.81 (0.0000) | |||
| LM-test (P-value) | 14333.58 (0.000) | 14892.82 (0.000) | |||
| Hausman test (P-value) | 42.95 (0.0005) | 54.93 (0.0172) | |||
| R2 overall | 0.824 | 0.7843 | 0.8053 | 0.7604 | 0.8056 |
| R2 within | 0.8110 | 0.8109 | 0.8280 | 0.8277 | |
| R2 between | 0.7770 | 0.7995 | 0.7460 | 0.7968 | |
| Number of Observations | 2902 | 2926 | 2926 | 2926 | 2926 |
| RETEST (p-value) | (0.1890) | (0.0182) | (0.0204) | (0.0283) | (0.0003) |
Dependent Variable: Trade Volume
| Explanatory variable | OLS (1) | FE (2) | RE (3) | FE (year) (4) | RE (year) (5) |
|---|---|---|---|---|---|
| Total GDP | 2.317*** (0.058) | 2.233*** (0.224) | 2.285*** (0.222) | 1.917*** (0.126) | 1.939*** (0.122) |
| Similarity index | 0.970*** (0.014) | 0.784*** (0.091) | 0.858*** (0.063) | 0.821*** (0.081) | 0.908*** (0.058) |
| Sum of K/L ratio | 0.177*** (0.045) | 0.150 (0.184) | 0.270 (0.179) | −0.166 (0.149) | −0.024 (0.135) |
| Difference of K/L ratio | 0.070*** (0.023) | −0.020 (0.037) | −0.010 (0.038) | 0.009 (0.035) | 0.017 (0.035) |
| Sum of T/L ratio | −0.276*** (0.052) | −1.075* (0.572) | −0.328 (0.213) | −0.814 (0.558) | −0.269 (0.211) |
| Difference of T/L ratio | 0.259*** (0.032) | 0.165 (0.137) | 0.148 (0.115) | 0.153 (0.131) | 0.142 (0.112) |
| Distance | −0.553*** (0.056) | (omitted) | −0.722*** (0.216) | (omitted) | −0.795*** (0.209) |
| RTA-APTA | −0.450*** (0.093) | −0.338 (0.206) | −0.406** (0.198) | −0.329 (0.199) | −0.402** (0.192) |
| RTA-HONGKONG | 2.326*** (0.129) | −0.706*** (0.097) | −0.667*** (0.083) | −0.895*** (0.085) | −0.839*** (0.069) |
| RTA-MACAO | −0.088 (0.246) | −1.514*** (0.116) | −1.610*** (0.083) | −1.607*** (0.111) | −1.697*** (0.083) |
| RTA-ASEAN | 0.544*** (0.087) | −0.287* (0.158) | −0.285* (0.162) | −0.372** (0.150) | −0.375** (0.156) |
| RTA-CHILE | 1.471*** (0.078) | (omitted) | 1.848*** (0.230) | (omitted) | 1.833*** (0.226) |
| RTA-PAKISTAN | −0.194** (0.091) | −0.303 (0.201) | −0.304* (0.175) | −0.410** (0.194) | −0.419** (0.169) |
| RTA-NEWZEALAND | 0.690*** (0.065) | −0.241** (0.099) | −0.170* (0.097) | −0.404*** (0.080) | −0.325*** (0.073) |
| RTA-PERU | 0.752*** (0.086) | −0.088 (0.077) | −0.033 (0.067) | −0.112 (0.071) | −0.079 (0.058) |
| RTA-COSTA RICA | 1.591*** (0.130) | 0.514*** (0.109) | 0.609*** (0.103) | 0.550*** (0.107) | 0.642*** (0.101) |
| RTA – SWITZERLAND | 0.894*** (0.043) | 0.244*** (0.090) | 0.234*** (0.086) | 0.244*** (0.082) | 0.247*** (0.073) |
| RTA – ICELAND | −1.366*** (0.076) | −0.501*** (0.115) | −0.450*** (0.105) | −0.517*** (0.096) | −0.444*** (0.081) |
| WTO | 0.208*** (0.069) | 0.134 (0.081) | 0.176** (0.086) | 0.885*** (0.326) | 0.929*** (0.280) |
| Constant | −11.519*** (0.732) | −19.372*** (2.205) | −10.729*** (2.550) | −16.674*** (1.757) | −7.578*** (2.141) |
| F-test (P-value) | 62.92 (0.000) | 68.08 (0.000) | |||
| LM-test (P-value) | 13056.20 (0.000) | 13523.72 (0.000) | |||
| Hausman test (P-value) | 13.96 (0.6701) | 22.85 (0.9432) | |||
| R2 overall | 0.824 | 0.655 | 0.805 | 0.694 | 0.804 |
| R2 within | 0.791 | 0.789 | 0.807 | 0.806 | |
| R2 between | 0.622 | 0.805 | 0.672 | 0.802 | |
| Number of Observations | 2902 | 2902 | 2902 | 2902 | 2902 |
| RETEST (p-value) | (0.7347) | (0.0062) | (0.0019) | (0.0000) | (0.0003) |