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Replication Data for: Staggered Difference-in-Differences in Gravity Settings: Revisiting the Effects of Trade Agreements
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Replication Data for: Staggered Difference-in-Differences in Gravity Settings: Revisiting the Effects of Trade Agreements

Arne J. Nagengast and Yoto V. Yotov
22 Nov 2024
url
https://doi.org/10.3886/e194561v1View
Published, Version of Record (VoR)CC BY V4.0 Open

Abstract

Difference-in-Differences Gravity Heterogeneity Trade
This deposit contains data and code for the article "Staggered Difference-in-Differences in Gravity Settings: Revisiting the Effects of Trade Agreements", in which we nest an extended two-way fixed effect (ETWFE) estimator for staggered difference-in-differences within the structural gravity model. To test the ETWFE, we estimate the effects of regional trade agreements (RTAs). The results suggest that RTA estimates in the current gravity literature may be biased downward (by more than 50% in our sample). Sensitivity analyses confirm the robustness of our main findings and demonstrate the applicability of our methods in different settings. We expect the ETWFE methods to have significant implications for the estimates of other policy variables in the trade literature and for gravity regressions on migration and FDI flows.

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