NSU Research Contributions
Title : Pooled Mean Group Estimation of the Bilateral Trade Balance Equation: USA vis-a-vis her Trading Partners
Authors : Gour Goswami, Sadaquat Junayed
| Journal Title: International Review of Applied Economics | Volume Number: 20 | Publication Year : 2006 | Issue Number: 4 |
| Index: scopus | Ranking: Q2 | ISSN: 0269-2171 | Publisher Name: Taylor & Francis |
| Pages : 515-526 | |||
| ISBN : 1465-3486 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG8 Decent Work & Economic Growth SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Sustain per capita economic growth Promote inclusive and sustainable industrialization |
| Impact statement: The autoregressive distributed lag (ARDL) model, although it distinguishes between the short- and long-run effects, allows both the intercepts and slopes to vary across countries. Static panel estimations, such as fixed effects (FE), cannot distinguish between short-run and long-run behavior. To address the issue of short-run heterogeneity and long-run homogeneity in the estimated coefficients in a panel framework, the pooled mean group (PMG) estimator has gained popularity since 1999. In this paper, we estimate the bilateral trade balance model for the USA vis-à-vis its 19 OECD trading partners for the period 1973q1–2004q4 using the PMG estimator and find that PMG performs better than the ARDL, FE, and MG estimators and provides significant, theoretically consistent results. | Collaboration: Partner University | Keywords: PMG, USA, Bilateral Trade Balance Equation |
