Some New Insights into Trade Potential between the EU and Its Mediterranean Partners

Table 1

Estimation results with alternative estimators.

	HT	TSHP	Heterosc.(HW)	AR(1)	Dynamic ABB
					Short run	Long run
GDP reporter	0.8186***	0.7522***	0.8103***	0.8286***	0.1231***	0.8632***
GDP partner	0.7719***	0.5594***	0.7706***	0.7829***	0.1101***	0.7721***
Tariffs	−0.2624***	−0.1044***	−0.2529***	−0.1570***	−0.0186***	−0.1304***
Ntbs	−0.0396***	−0.0227**	−0.0382***	−0.0224**	−0.0104***	−0.0529***
Logistics	2.7629***	2.1222***	2.7718***	1.5238**	0.2893***	2.029***
Common language	0.3356***	0.3629***	0.3334***	0.5614***	0.0782***	0.5483***
Colony	0.5165***	0.3255**	0.5124***	0.6508***	0.0949***	0.6655***
Migration	0.2744***	0.2130***	0.2705***	0.2712***	0.0327***	0.2293***
FDI stocks	0.0274***	0.1702***	0.0254***	0.0189***	0.0007**	0.0491***
Services	0.1778***	0.1919***	0.1777***	0.4722***	0.0573***	0.4018***
Regional agreements	1.7549***	1.3119***	1.7601***	2.0822***	0.3085***	2.1633***
Governance: rule of law	0.2025***	0.1925***	0.2042***	0.1734***	0.0337***	0.2363***
Lagged exports	—	—	—	—	0.8574***	—
Intercept	−31.0560***	−22.9977 ***	−31.0025***	−32.9113***	−4.5888***	−32.1795***
Selection variable	—	0.2577***	—	—	—	—
Adjusted 𝑅-squared	0.7292	—	—	—	—	—
Vif	2.47	—	—	—	—	—
Hausman	24.8	—	—	—	—	—

*** Significant at 1% level; ^**significant at 5% level; *significant at 10% level.