Money in the Past Ten Term Paper

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It could understood that in response to this the East European nations became progressively focused on their CMEA counterparts, to include in particular the U.S.S.R., to buy manufactured goods that were not considered competitive in world markets.

Two methodological concerns have attempted to inform us about the geographical distribution. The initial issue deals with the approach devised by Hamilton and Winters and others which involved the estimation of a gravity model by applying data by means of a cross section of countries.

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The gravity approach propounded by Hamilton and Winters hypothesize that exports from a particular nation to other nation enhance the GDP of each nation. Exports decline with the rise of population of each nation and with the enhancement of distance between the two nations. The second approach was devised by Collins and Rodrik during 1991 to determine the long-run trading patterns of Eastern European nations that generate estimates applying trading patterns in 1928 as the base......

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