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- X j vaeikjlt We estimate 4 di↵erent instrumental variables as in Kummritz (2016): the first is the same as the one in Kummritz (2016) with bilateral gross export trade costs and industrial distance aggregated for all the years in the sample, the second is estimated using bilateral gross export trade costs and industrial distance computed for every year, the third is generated using bilateral value added trade costs and industrial distance aggregated over time in our the sample and finally the fourth is obtained using bilateral value added trade costs and industrial distance calculated for every year.
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