Applied Econometrics Assignment 2

1. On the given data, perform the following analysis:
   
   1. Pooled data analysis:
      
      • Difference-in-difference estimator.
        
   2. Panel data analysis:
      
      • Fixed effect estimation.
        
      • Random effect estimation.
        
      • Hausman Test.
        
      • Significance of time-fixed effects.
        
      • Significance of random effects.
        

1. As part of this assignment, collect the bilateral trade data for the countries assigned to you for at least a period of 10-15 years. Then, fit the gravity model on the collected trade data. Give justification for the methodology and discuss your findings with proper interpretation.