Analyzing Bilateral Trade Barriers under Global Trade Context: A Gravity Model Adjusted Trade Intensity Index Approach

2014 ◽  
Vol 18 (2) ◽  
pp. 326-339 ◽  
Author(s):  
Bo Chen ◽  
Yao Li
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Global Trade ◽  
Trade Barriers ◽  
Trade Intensity ◽  
Intensity Index ◽  
Index Approach

scholarly journals AN EXAMINATION OF RECENT TRENDS, COMPOSITION AND TRADE INTENSITY OF NIGERIA-BRAZIL BILATERAL RELATIONS

2020 ◽  
Vol 1 (1) ◽  
pp. 31-43
Author(s):  
Kabiru Hannafi Ibrahim
Keyword(s):  
Bilateral Trade ◽  
Trade Flow ◽  
Trade Intensity ◽  
Trade Relations ◽  
Intensity Index ◽  
Bilateral Relations ◽  
Bilateral Trade Flow ◽  
Recent Trends ◽  
High Possibility

This paper examines the trends, composition and trade intensity of Nigeria-Brazil bilateral trade relations for the period 2000-2017. Tables, graphs, and trade intensity index were employed. The results indicate that Nigeria's trade with Brazil has significantly recorded impressive growth. However, the share of major products exported to Brazil over the period remained insignificant with the exception of mineral fuels. The results further show that the share of major products imported from Brazil is significant, indicating that Brazilian exports to Nigeria are more diversified than that of Nigeria's export to Brazil. The trade intensity index indicates high trade intensities between the countries and the high possibility of increasing bilateral trade flow. Based on these findings, the study recommends the need for Nigeria’s export to be restructured in order to reduce the prevailing role of mineral fuels to Nigeria's exports through diversification and identification of new export opportunities in Brazilian markets.

scholarly journals NIGERIA-CHINA: AN EXAMINATION OF RECENT BILATERAL TRADE RELATIONS

2020 ◽  
Vol 1 (5) ◽  
Author(s):  
Kabiru Hannafi Ibrahim
Keyword(s):  
Bilateral Trade ◽  
Export Promotion ◽  
Trade Intensity ◽  
Trade Imbalance ◽  
Chinese Market ◽  
Trade Relations ◽  
Intensity Index ◽  
Market Opportunities ◽  
High Possibility

This study examines the trends, composition, and intensity of Nigeria-China bilateral trade for the period, 1992-2016. Tables, graphs, and trade intensity formula were used. The results show that Nigeria’s trade with China has considerably recorded remarkable growth. With the exception of mineral fuels and products of their distillation, the share of major products exported to China over the period remained insignificant. More importantly, the results reveal that the share of major products imported from China remained significant, indicating that Chinese exports supply to Nigeria is more diversified than that of Nigeria's exports supply to China. Nigeria’s trade intensity index shows a low possibility of increasing export to China and a high possibility of increasing import from China. In the case of China, there is exists a high possibility of increasing its export and decreasing its import to and from Nigeria. Based on the study’s findings, the study recommends an urgent need for Nigeria's government to encourage the export of various products in order to promote bilateral trade and mitigate the existing trade imbalance. The study further recommends the need for government, researchers, and export promotion agencies to identify new market opportunities for Nigeria's exports in the Chinese market.

scholarly journals Determinants of trade intensity of Egypt with COMESA Countries

2015 ◽  
Vol 2 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Samah SA Elmorsy
Keyword(s):  
Gross Domestic Product ◽  
Gravity Model ◽  
Regional Integration ◽  
Policy Implication ◽  
Major Effect ◽  
Trade Intensity ◽  
Economic Relations ◽  
Trade Relations ◽  
Intensity Index ◽  
Econometric Methodology

Egypt has joined to COMESA since May 1998 in order to promote its economic relations with the rest of member states, especially the trade relations, so the aim of the paper is to assess COMESA regional integration efforts and to identify the most effective and important variables that determine trade intensity of Egypt with COMESA countries. To achieve the aim of the paper, estimation of Trade Intensity Index (TII) of Egypt with COMESA was adopted, and econometric methodology (gravity model) was used to estimate the variables that have the major effect on Egypt’s trade with COMESA.The paper concludes that there are opportunities to increase Egypt’s Trade with COMESA, after applying gravity model paper concludes that Gross Domestic Product and existence of sharing borders are the most effective variables that determine Egypt trade with COMESA, paper also defined the major obstacles of regional integration in COMESA and presented some policy implication.

scholarly journals INDIA’S BILATERAL TRADE WITH CHINA- EMPIRICAL STUDY BASED ON TRADE INTENSITY INDEX & TRADE RECIPROCITY INDEX

2021 ◽  
Vol 2 (1) ◽  
pp. 1-16
Author(s):  
ANAND SHANKAR PASWAN
Keyword(s):  
Growth Rate ◽  
Bilateral Trade ◽  
Point Of View ◽  
Annual Growth ◽  
Annual Growth Rate ◽  
Trade Intensity ◽  
Total Trade ◽  
Electrical Machinery ◽  
Intensity Index ◽  
India And China

This paper is an attempt to examine and compare the bilateral relationship between India and China. It analyses the trends in trade and the major composition of commodities being traded between India and China during the period (2008-2017). Annual Growth Rate (AGR), Combined Annual Growth Rate (CAGR), Trade Intensity Index (TII), and Trade Reciprocity Index (TRI) have been used in order to analyse the bilateral trade between India and China. The present study reveals that India imports 3 to 4 times more than it exports to China whereas overall trade between India and China also increased over the years specially in the area of import as compare to India’s total trade to the world. However, the top ten commodities that have been dominating in India’s trade with China are: Ores, Cotton, Copper and articles, Organic chemicals, Electrical machinery & equipment, nuclear reactors, etc. Trade Intensity Index reveals there is serious unbalanced trade relationship between India and China from India’s point of view and India need to take productive steps for minimising unbalanced trade balance. Whereas, TRI index also reveals that India is stepping towards unbalanced trade with China as the import indices keep on increasing in comparison to export indices and therefore, balance of trade results unfavourable which requires India to rethink and revamp its export and import policy.

scholarly journals Trade and Infrastructure in the Belt and Road Initiative: A Gravity Analysis Based on Revealed Trade Preferences

2021 ◽  
Vol 14 (2) ◽  
pp. 52
Author(s):  
Cristina Di Stefano ◽  
P. Lelio Iapadre ◽  
Ilaria Salvati
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Belt And Road Initiative ◽  
Total Trade ◽  
Multilateral Trade ◽  
Belt And Road ◽  
Trade Preferences ◽  
Entire Network ◽  
The Belt And Road

This paper aims at investigating whether and how the intensity of trade between a pair of countries changes when they experience improvements in their infrastructural systems. We carry out our analysis considering countries participating in the Belt and Road Initiative (BRI), a project specifically designed to promote infrastructural connectivity and therefore boost trade among the countries involved. Our empirical strategy relies on a particular specification of the gravity model, in which the dependent variable consists in an index of revealed trade preferences, calculated by comparing the actual value of trade flows between two countries with their expected value, proportional to the two countries’ total trade. Such methodology allows us to estimate bilateral trade intensity without resorting to the traditional “size” variables of the gravity model, taking the entire network of multilateral trade into account. We then study the possible impact of an improvement in infrastructure on a ‘gravity-adjusted’ measure of trade preferences, given by the residuals of our first estimations. Our results indicate that bilateral preferences among BRI countries will intensify inasmuch as they succeed in coordinating their infrastructural projects.

scholarly journals An empirical analysis of Pakistan’s bilateral trade and trade potential with China: A gravity model approach

2018 ◽  
Vol 6 (1) ◽  
pp. 1504409 ◽  
Author(s):  
Muhammad Saqib Irshad ◽  
Qi Xin ◽  
Zhang Hui ◽  
Hamza Arshad ◽  
Duncan Watson
Keyword(s):  
Gravity Model ◽  
Empirical Analysis ◽  
Bilateral Trade ◽  
Trade Potential ◽  
Model Approach

Currency Manipulations and Bilateral Trade Between China and the USA

2017 ◽  
Vol 52 (3) ◽  
pp. 171-184 ◽  
Author(s):  
Masoud Moghaddam ◽  
Jie Duan
Keyword(s):  
Exchange Rate ◽  
Gravity Model ◽  
Bilateral Trade ◽  
Trade Deficit ◽  
The Us ◽  
Spot Exchange Rate ◽  
Main Culprit ◽  
Long Time ◽  
The Usa ◽  
Strong Relation

The US trade deficit with China has existed for a long time, and its dollar value has been on the rise recently. It is widely believed that the main culprit is the manipulated value of Renminbi relative to the US dollar. Towards that end, this article re-examines the spot exchange rate and bilateral trade nexus using the Fourier approximation and a variant of the well-known gravity model during the sample period 1993: q1–2014: q1. Although China’s exports to the US Granger cause the exchange rate in a co-integrated space, the findings of a vector error correction model indicate that there is not a strong relation between the two. Indeed, within the aforementioned sample, only 15.52 per cent of changes in China’s exports to the USA are attributable to changes in the spot exchange rate. This is noticeably much smaller than impacts of the other variables utilized in the estimated gravity model. As such, the palpable trade imbalance between the USA and China cannot be single-handedly blamed on the spot exchange rate manipulations.

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