Dear Joao,
I am working on trade potential estimation between Morocco and it's principal commercial partners, from 2000 to 2016, in panel data with 21 countries and 7 variables. First i didn't logg the dependent variable which is Moroccan exports to 21 economies, but at this stage i do not know how can i estimate the equation of moroccan exports? is the dummy variables should be with exponential or not? is this equation below is the right equation to estimate it in order to pass to the trade potential:
expmp(hat)= cons+a1*ln(gdppcm)+a2*ln(gdppcp)+a3*ln(distw)+ expont(wtops)+expont(pta)+expon(col) for the gravity augmented equation
expmp(hat)= cons+a1*ln(gdppcm)+a2*ln(gdppcp)+a3*ln(distw) for the simple gravity equation
Array
Array
Noted that:
gdppcm: gdp per capitat of Morocco
gdppcp: gdp per capita of the commercial partner.
distw: weighted distance between Morocco and its partner.
wtops: wto membership for morocco and its partner.
col: common offical language.
i hope that you help me with this
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