**Table 2: Results of the gravity equation estimates on panel data**

|||**Mijt**|||||
|---|---|---|---|---|---|---|
|**Variables**|**5. HT**|**6. HT**|**7. HT**|**8. HT**|**9. HT**|**10. HT**|
|**Ln Yit**<br>**Ln Yjt**<br>**Ln Rit**<br>**Ln Rjt**<br>**ln Dij**<br>**Bij**<br>**ln (1+Kit) **<br>**ln (1+Kjt) **|1.068***<br>[35.131]<br>1.077***<br>[39.018]<br>0.584***<br>[2.675]<br>0.920***<br>[4.230]<br>-1.506*** <br>[31.829]<br>0.986***<br>[4.374]<br>0.269***<br>[6.509]<br>0.204***<br>[5.021]|1.068***<br>[35.151]<br>1.077***<br>[39.013]<br>0.620***<br>[2.831]<br>0.959***<br>[4.386]<br> -1.511*** <br>[31.900]<br>0.984***<br>[4.369]<br>0.269***<br>[6.523]<br>0.204***<br>[5.026]|1.079***<br>[42.440]<br>1.099***<br>[47.193]<br>0.598***<br>[2.787]<br>1.027***<br>[4.844]<br> -1.500*** <br>[31.495]<br>0.924***<br>[4.063]<br>0.284***<br>[5.359]<br>0.216***<br>[6.927]|1.081***<br>[41.770]<br>1.101***<br>[46.390]<br>0.563***<br>[2.600]<br>0.996***<br>[4.643]<br> -1.498***<br>[31.419]<br>0.797***<br>[3.468]<br>0.283***<br>[6.892]<br>0.216***<br>[5.347]|1.067***<br>[35.123]<br>1.085***<br>[39.511]<br>0.585***<br>[2.672]<br>0.941***<br>[4.312]<br>-1.503*** <br>[31.688]<br>0.959***<br>[4.244]<br>0.270***<br>[6.535]<br>0.206***<br>[5.072]|1.066***<br>[35.083]<br>1.085***<br>[39.501]<br>0.619***<br>[2.817]<br>0.980***<br>[4.475]<br> -1.509***<br>[31.790]<br>0.954***<br>[4.227]<br>0.271***<br>[6.566]<br>0.206***<br>[5.091]|
|**CAi**||2,999||2.257***||-0,119|
|||[0.522]||[2.718]||[0.082]|
|**CAj**||-4,620||2.201***||2,279|
|||[0.845]||[2.679]||[1.589]|
|_Landlocked components:_|||||||
|1. Distance to the nearest port|||||||
|**ln (1+Li(1-Bij)Di**<sup>**PORT**</sup>**)**|-0.033**<br>[2421]|-0.042***<br>[2963]|||||
|**ln (1+Lj(1-Bij)Dj**<sup>**PORT**</sup>**)**|.<br>-0.062*** <br>|.<br> -0.073***<br>|||||
||[4.552]|[5.143]|||||
|**CAi . ln (1+Li(1-Bij)Di**<sup>**PORT**</sup>**)**||-0,032<br>[0446]|||||
|**CAj . ln (1+Lj(1-Bij)Dj**<sup>**PORT**</sup>**)**||.<br>0,064|||||
|||[0.937]|||||
|2. Infrastructure of transit countries|||||||
|**ln (1+ Li(1-Bij)/Kit**<sup>**TRANSIT**</sup>**)**|||-0,029<br>[1.246]|-0,034<br>[1.416]|||
|**ln (1+ Lj(1-Bij)/Kjt**<sup>**TRANSIT**</sup>**)**|||-0.083***|<br> -0.082***|||
||||[3.494]|[3.382]|||
|**CAi . ln (1+ Li(1-Bij)/Kit**<sup>**TRANSIT**</sup>**)**||||-0.101***<br>[2.802]|||
|**CAj . ln (1+ Lj(1-Bij)/Kjt**<sup>**TRANSIT**</sup>**)**||||<br>-0.194***<br>2614|||
|3.**No. of borders with coastal**countries||||[.]|||
|**Li(1-Bij)Bi **<sup>**TRANSIT**</sup>|||||-0.060**<br>[2219]|-0.093***<br>[3084]|
|**Lj(1-Bij)Bj **<sup>**TRANSIT**</sup>|||||.<br>-0.079*** <br>|.<br> -0.105***<br>|
|**CAi . Lj(1-Bij)Bi **<sup>**TRANSIT**</sup>|||||[2.969]|[3.535]<br>0,139<br>[0470]|
|**CAj . Lj(1-Bij)Bj **<sup>**TRANSIT**</sup>||||||.<br>-0,366|
|||||||[1.262]|
|Number of obs (NT)|185967|185967|185967|185967|185967|185967|
|Number of bilateral (N)|23470|23470|23470|23470|23470|23470|

***, ** and * significant at the 1%, 5% and 10% levels respectively (Absolute value of t-student is presented under the correspondent coefficient). The time dummy variables and the constant are not reported in order to save space. CAi(j) =1 if country i(j) is a Central Asian countries.

Hausman –Taylor method with endogenous variables = lnYit, lnYjt, ln(1+Kit) and (1+lnKjt ).

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