METHODOLOGICAL ISSUES OF ECONOMETRIC ESTIMATING EXPORT GRAVITY MODELS

Abstract

In this article, the authors critically analyze the existing econometric approaches to estimating gravity models of exports from the point of view of solving such problems as taking into account zero observations, bias, inconsistency and inefficiency of estimates. As a result, the authors come to the conclusion that the random effects panel regression estimation is the most preferable method for estimating the gravity export equation. This result has come from a case of Uzbekistan.