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This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example. We argue that the best estimator involves time-varying country dummies, a time dummy and time-invariant pair dummies.
Journal of Economic Integration aims to provide relevant policy implications on the world economy that has been evolving all the time in all aspects. The Journal is founded by Dr. Choo, Myung-Gun in the second half of the 1980s who was particularly interested in the papers studying the group of economies as the object of investigation, expecting the concept of “Economic Integration” gives birth to the new phenomena. We believe that the insightful policy implications of the world economy need to be discussed in order to manage the closely integrated world economy in a more efficient and desirable way and thus hopefully hunger, poverty, and crisis become almost forgotten words in the near future. To achieve it, we need to be intellectually ready for the economic integration, with a deep understanding on the past and the present of financial, trade, and political-economic integrations.
Founder of this Journal is Dr. Myung-Gun, Choo who has imagined in the 1980s that “economic integration” will be one of the most important pheonmena and would like to establish an economic journal touching upon the issue. He is now a board member of the foundation for Sejong University. Since then, Professor Hwan-Ho Lee at Sejong University has been devoted to develop the Journal for more than 20 years up until. 2010 . The Journal is managed at Center for Economic Integration within Sejong University.
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Journal of Economic Integration
© 2007 Center for Economic Integration, Sejong University