This project aims to develop the structural gravity framework for policy analysis and evaluating economic integration along three tracks.
First, we will use the gravity model to assess the effectiveness of regional organizations in achieving economic integration. By estimating their impact on trade, investment, or migration, we will identify institutional characteristics that foster or hinder integration.
Second, we will extend the gravity framework to include interactions between trade, foreign investment, and migration. Currently, these are analyzed separately, ignoring their interdependence. We will incorporate the mutual relationships between goods and production factors to better estimate the impact of economic integration agreements.
Third, we will use the gravity framework to assess sustainable development initiatives, particularly the EU's regulatory measures affecting international trade. These regulations often require firms to prove compliance with standards. We will focus on the impact of the EU's deforestation regulations (EUTR and EUDR) on trade volume and structure.