Dear all,
Can the pair fixed effects suggested by Baier and Bergstrand (2007) to address endogeneity of trade policy be used to solve the same problem in other instances?
In my case, I am using PPML to analyze effect of tourist arrivals on trade. Of course, there is reverse causality as various studies have shown that tourism can lead to trade and vice versa. Will use of the pair fixed effects address this endogeneity issue?
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