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Aggregate share parameter - PowerPoint PPT Presentation

Setting all the c ijk equal to unity and dividing both sides of equation (4)

Setting all the c ijk equal to unity and dividing both sides of equation (4) above by j j Y j we obtain the aggregate share parameter for country i goods on the right k ik . Substituting the left-hand side into equation (3) he obtained the following gravity equation. m. i Y. Y. i. j

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Aggregate share parameter - PowerPoint PPT Presentation

Setting all the c ijk equal to unity and dividing both sides of equation (4)