Predicting potential trade using gravity model coefficients

[homa haddad]

Dear all,

I'm doing a research on Iran's trade flows while sanctions were imposed against Iran and after they were lifted. I ran the PPML regression ( I also ran the OLS regression, but the results I've got from PPML are more significant). Unfortunately I'm not good at programming and do not know how to use these coefficients in the gravity equation on Stata 14.0 to get the potential trade. I've looked for an answer among same questions on Statalist, but got no helpful answers. I would appreciate any responses. Thank you!

[homa haddad]

Dear Joao Santos Silva, do you have any recommendations for me??? It would be awesome. Best, Homa

[Joao Santos Silva]

If you are using the ppml command you can just use predict after it. For example,

predict xbppml, xb
gen potential_trade = exp(xbpml)

Joao

[homa haddad]

Dear Joao Santos Silva,

yes I use the PPML regression. Many thanks for your respond!

Best wishes,
Homa