Variables

Description

Data sources

$X_{ij}$

It is the dependent variable that measures the bilateral trade betwen i and j.

WITS (COMTRADE)

${\text{dist}}_{ij}$

This is the distance that separates country i and j. It’s calculated from geographic coordinates and measured in kilometers.

CEPII

$Y_{\left(i\right)j}$

Gross Domestic Product (GDP) of country i and j

UNCTAD

${\text{POP}}_{\left(i\right)j}$

Population Total of countries i and j

UNCTAD

${\text{LANG}}_{ij}$

Dummy variable indicating common language sharing between countries i and j

CEPII

${\text{CCOL}}_{ij}$

Dummy variable that indicates whether countries i and j have a common colonizer

CEPII

${\text{ouv}}_{ij}$

Dummy variable to capture if countries i and j have a maritime opening

CEPII

${\text{igouv}}_{it}$

This is the simple arithmetic mean of governance indicators

Authors based on World Bank

${\text{infrastructures}}_{it}$

It’s all the physical infrastructure that considered in the model

WDI and UIT