This module on gravity equations is composed of a literature review summarizing the key points and references you have to know when interested to estimate a gravity equation and a set of illustrative STATA program used to perform such estimations.
The code provided in this module will give you several examples of hands-on estimation to familiarize yourself with the gravity equation methodological choices highlighted in the literature review. We provide an illustrative dataset with alternative Stata codes presenting the different possible estimation strategies. As you read this guide, you can use STATA to carry out estimations designed to familiarize you with the software and, more importantly, the gravity model.
STATA is a statistical software program and we assume that you have a recent version of STATA (version 11.2 or later).
The literature review, written by Prof. Luca Salvatici is available as AGRODEP TN-04 "The Gravity Model in International Trade"
The user guide for the STATA code is the AGRODEP TN-05 "Hands-on gravity estimation with STATA" written by Prof. Luca Salvatici and Maria Cipollina.
The Stata codes of GRAVITY model are available to AGRODEP members.