Abstract
We analyze how a set of determinants affect trade among European countries over the period 1992-2008. The factors encompass variables from the areas of geography, culture, institutions, infrastructure, and trade direction.
Trade is analyzed for four types of goods: primary goods, parts and components, capital goods, and consumer goods. For each type of good we also distinguish its definition in terms of flows, intensive margin, and extensive margin.
Methodologically, we first derive country-pair fixed effects over all possible pairs of export-import partners, and in the second stage we relate fixed effects with a set of influential factors.