An Empirical Test of the Dutch Disease Hypothesis Using a Gravity Model of Trade

2003 ◽  
Author(s):  
Jean-Philippe Stijns
Keyword(s):  
Gravity Model ◽  
Empirical Test ◽  
Dutch Disease ◽  
Gravity Model Of Trade

scholarly journals Gravity Model of Trade of the Czech and Slovak Republics 1995-2012: How Have Determinants of Trade Changed?

2015 ◽  
Vol 63 (6) ◽  
pp. 759-777 ◽  
Author(s):  
Martin Grančay ◽  
Nóra Grančay ◽  
Jana Drutarovská ◽  
Ladislav Mura
Keyword(s):  
Gravity Model ◽  
Gravity Model Of Trade

scholarly journals EFFECTS OF REGIONALIZED TRADE RESTRICTIONS ON QUANTITY EXPORTED DURING A HIGHLY PATHOGENIC AVIAN INFLUENZA EVENT

2018 ◽  
Vol 50 (2) ◽  
pp. 270-289 ◽  
Author(s):  
JADA M. THOMPSON
Keyword(s):  
International Trade ◽  
Avian Influenza ◽  
Gravity Model ◽  
Highly Pathogenic Avian Influenza ◽  
Trade Restrictions ◽  
Highly Pathogenic ◽  
Pathogenic Avian Influenza ◽  
Gravity Model Of Trade

AbstractFrom December 2014 to June 2015, U.S. poultry was affected by highly pathogenic avian influenza that led to destruction of 48 million birds and losses in international trade. During the event, 45 countries placed trade restrictions on U.S. poultry exports, varying from regionalized to national poultry restrictions. Using a gravity model of trade, the effects on quantity traded is estimated for poultry exports at the aggregated and disaggregated commodity level to understand product flows during an event. Results indicate U.S. poultry exports benefit from countries willing to apply limited trade restrictions, and the trade impact varies across disaggregated commodities.

scholarly journals A Gravity Model of Trade for Nicaraguan Agricultural Exports

2018 ◽  
Vol 37 (74) ◽  
pp. 391-428
Author(s):  
Medardo Aguirre González ◽  
Claudio Candia Campano ◽  
Lilliam Antón López
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Free Trade Agreements ◽  
Trade Agreement ◽  
Ordinary Least Squares ◽  
Agricultural Exports ◽  
Determining Factors ◽  
Trading Partners ◽  
Gravity Model Of Trade

This research aims to find the determining factors of Nicaraguan agricultural exports. To carry out this study, the author formulated a Gravity Model of Trade (GMT) and then made an estimation using a version of Ordinary Least Squares (OLS) that incorporates a consistent covariance matrix estimator to correct the heteroskedasticity and autocorrelation effects. The data considered observations over twenty years and for twelve countries: eight have signed a Free Trade Agreement (FTA) with Nicaragua and four have not. The variables that significantly increased the flow of Nicaraguan agricultural exports are the following: Nicaragua’s trading partners’ population, Nicaragua’s Gross Domestic Product per capita (GDP pc), the Real Exchange Rate (RER), and Nicaragua’s trading partners’ GDP pc; however, the distance variable turned out to be significantly trade-inhibiting. Free Trade Agreements (FTAs) predominantly have significant effects.

scholarly journals Does German Development Aid Promote German Exports?

2009 ◽  
Vol 10 (3) ◽  
pp. 317-338 ◽  
Author(s):  
Inmaculada Martínez-Zarzoso ◽  
Stephan Klasen ◽  
Felicitas Nowak-Lehmann D. ◽  
Mario Larch
Keyword(s):  
Gravity Model ◽  
Development Aid ◽  
Point Estimate ◽  
Steady Increase ◽  
German Development ◽  
Trade Show ◽  
Long Run ◽  
Gravity Model Of Trade ◽  
Over Time

Abstract This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that, in the long run, German aid is associated with an increase in exports of goods that is larger than the aid flow, with a point estimate of 140% of the aid given. In addition, the evolution of the estimated coefficients over time shows an effect that is consistently positive but that oscillates over time. Interestingly, after a decrease in the 1990s, the estimated coefficients of the effect of aid on trade show a steady increase in the period between 2001 and 2005. The paper distinguishes among recipient countries and finds that the return on aid measured by German exports is higher for aid to countries considered ‘strategic aid recipients’ by the German government.We also find some evidence that aid given by other EU members reduces German exports.

scholarly journals The Gravity Model Of Trade Applied To Africa

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Michael M. Tansey ◽  
Alhagie Touray
Keyword(s):  
Gravity Model ◽  
African Country ◽  
The Other ◽  
Colonial Power ◽  
Large Share ◽  
African Countries ◽  
Logarithmic Model ◽  
Goods And Services ◽  
Potential Development ◽  
Gravity Model Of Trade

The gravity model states that trade between any two countries is proportional, other things equal, to the product of the two countries’ GDPs, and diminishes with the distance between the two countries. The logic is that larger economies tend to spend large amounts on imports and attract large share of other countries spending (exports) because they produce large quantity and variety of goods and services. Distance, on the other hand, tends to lessen trade between countries because of transportation costs and other intangible barriers, such as language, geography, and historic colonial relationships.  The following specific hypotheses from the gravity model of trade are tested with respect to African countries alone:  The amount of exports by one African country to another is inversely related to the distance between the two countries,  The amount of exports by one African country to another reflects the GDP of the country to whom the exports are sent, The amount of exports directly reflects a country’s own GDP, and Countries associated with the same colonial power experience greater trade.  Each of these hypotheses is tested with logarithmic forms of the variables in the hypotheses.  While the resulting logarithmic model works is statistically significant and bears the correct signs, it does not show colonial patterns to be a strong as those found in other studies that are focused on inter-continental trade relationships.  The significance of colonization in other studies may be a surrogate for the degree of development of nations.  Since trade grows less than proportionately both with respect to the GDP of the importing nation and with respect to the GDP of the exporter, this study shows a disappointing trade impact of growth in the developing world on the potential development of Africa through export growth.

Gravity Model of Trade with Linear Quantile Mixed Models Approach

2017 ◽  
pp. 561-574
Author(s):  
Pathairat Pastpipatkul ◽  
Petchaluck Boonyakunakorn ◽  
Songsak Sriboonchitta
Keyword(s):  
Gravity Model ◽  
Mixed Models ◽  
Gravity Model Of Trade

Transitional Growth and Trade with Frictions: A Structural Estimation Framework

2020 ◽  
Vol 130 (630) ◽  
pp. 1583-1607 ◽  
Author(s):  
James E Anderson ◽  
Mario Larch ◽  
Yoto V Yotov
Keyword(s):  
Gravity Model ◽  
Capital Accumulation ◽  
Structural Model ◽  
Steady States ◽  
Trade Costs ◽  
Country Size ◽  
Accumulation Mechanism ◽  
Producer Prices ◽  
Gravity Model Of Trade ◽  
Dynamic Path

Abstract We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory maps to an econometric system that identifies the parameters of the model and establishes causal links between trade, capital accumulation and income. Counterfactual trade liberalisation magnifies static gains by a dynamic path multiplier of 1.8.

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