How can I calculate Multilateral Resistance Term (MRS) in gravity equation?

[Myo Win]

Dear all,
May I request the code for following equation and I am not familiar with MRS. How can I calculate with Stata and please let me know the code. This equation comes from gravity model.

[Joao Santos Silva]

The standard way of doing this is by including the dummies (aka FE) mentioned at the bottom of your second image.

Best wishes,

Joao

[Myo Win]

Thank you Joao. Please let me know more about (aka FE) and link to know about the second image and MRS. I am not familiar with MRS and equation (3.1) in the image.

[Joao Santos Silva]

I suggest you study the Anderson and van Wincoop (2003) paper they refer to.

Best wishes,

Joao