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RDP 2014-07: International Trade Costs, Global Supply Chains and Value-added Trade in Australia
Equation (3)
Y
i
c
t
=
α
0
+
O
U
T
P
U
T
′
i
c
t
α
1
+
T
R
C
O
T
S
′
i
c
t
α
2
+
R
E
G
′
i
c
t
α
3
+
X
′
i
c
t
α
4
+
θ
i
c
+
η
t
+
ε
i
c
t
︸
ν
i
c
t
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