The models presented in this study so far were constructed within a given set of characteristics. The import allocation or total allocation models were assumed to be valid on a given import market or country, for a particular category of goods and with a given number of trade partners. Before we pass to actual estimation and hypothesis testing we first give a description of the available dataset. A notable feature of this dataset is that it contains bilateral import prices. We saw in subsection 1.4.2 that international linkage models using bilateral price data are scarce, and therefore we consider it worthwile in this chapter to pay some attention to the way in which the bilateral prices used in this study were constructed.
KeywordsUnite Nation Basic Category Intermediate Input Import Price Weak Separability
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