Based on the Gravity Model. Need to pick a specific framework to work with within the general Gravity Model theory. You can choose whatever you’d like. Mind that initially I had done a proposal to talk about how the costs of shipping (boats and also fuel for airplanes) impacts trade. But I didn’t get as far as to see if there was a lot of data neither to test if the variables are significant. So, since I’m pretty sure I need to find a significant variable in order to be able to defend my thesis well, feel free to change the variables analyzed in my thesis as long as it pertains to trade between Brazil and China. It’s pretty important that my paper reaches some sort of positive conclusion, even if that conclusion is only a very tiny contribution to the scientific community and even if the topic is boring to death.
Background info: Brazil exports commodities to China; China exports manufactured goods. Over time this relation has changed quite a bit, and also the way things are traded nowadays is a bit different too. I’m actually interested in knowing which factors contributed to these changes and how that relates to the Gravity Model.
Need to use Econometrics and run all the relevant tests on stata (or whatever program), including all the tables and results of tests for heteroskedasticity and all that jazz, please be as complete as possible with the tests and their interpretations since I have a hard time understanding. I failed Econometrics 3x so I honestly don’t know.
If possible please keep the language as simple as possible so that I can understand what you did and present it as my own at the defense.