By Andrew K. Rose and Charles Engel We use two data sets: one multilateral (“data12” is provided) and one bilateral (“dat9511” is provided). Earlier variants (e.g., data9 or dat954) have fewer data than later versions; they are sometimes used in programs and can be traced by looking at the output of the programs that add data (e.g., dat951). Multilateral Data Set (data12) This data set consists of annual observations for 210 “countries” between 1960 and 1996 extracted from the 1998 World Bank World Development Indicators (WDI) CD-ROM. It is described in more detail in the paper. Bilateral Data Set (dat9511) This data set consists essentially of 1995 observations from the WTDB, a consistent recompilation of United Nations trade data discussed in Feenstra, Lipsey and Bowen (1997). Over 150 countries, dependencies, territories, overseas departments, colonies, and so forth (referred to simply as “countries” below) for which the United Nations Statistical Office collects international trade data are included in the data set. Country location (used to calculate Great Circle distance) is taken from the CIA’s web site (http://www.odci.gov/cia/publications/factbook/index.html) which also provides observation for a number of other control variables. These include geographic variables, such as: land contiguity dummy (one if the two countries share a land border, zero otherwise), common language (one for countries with a common language), landlocked and island status, land mass and colonial status. We used the WTO’s website (http://www.wto.org/wto/develop/webrtas.htm) for information on membership in regional trade agreements. Real GDP and population are taken from the 1998 World Bank World Development Indicators CD-ROM.
