scholarly journals Pakistan’s Trade and Trading Partners Using Gravity Model: A Static and Dynamic Panel Data

2019 ◽  
Vol 7 (1) ◽  
pp. 11-19
Author(s):  
Sana Ullah ◽  
◽  
Adiqa Kausar Kiani ◽  
Muhammad Imran ◽  
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Theoretical Models ◽  
Vital Role ◽  
Dynamic Panel Data ◽  
Trading Partners ◽  
Trade Partner ◽  
Political Globalization ◽  
Economic Size ◽  
Trade Partners

This paper examines Pakistans trade flows using a gravity model for the period 2002-2015. We have selected the following major trade partners: China, UAE, Saudi Arab, United States, Kuwait, Malaysia, Japan, India, Singapore, Afghanistan and Iran. In this research, we employed static and dynamic econometric approaches. The results from the two approaches are similar, which showed economic size and distance have played a crucial role in bilateral trade. Furthermore, political globalization was found to be significant and played a vital role during the study period. These variables confirm that the theoretical models, Pakistan and Pakistan trade partner with economic masses, political globalization, and distance strongly effect trade liaison

Gravity Models of China's Bamboo and Rattan Products Exports: Applications to Trade Potential Analysis

2019 ◽  
Vol 69 (4) ◽  
pp. 337-344
Author(s):  
Li Huang ◽  
Ke Chen ◽  
Mi Zhou ◽  
Brendan Nuse
Keyword(s):  
Bilateral Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Flows ◽  
Gravity Models ◽  
Asia Pacific ◽  
Trading Partners ◽  
Significant Negative Impact ◽  
Trade Potential ◽  
Economic Size

Abstract Using export panel data for China and 24 bamboo and rattan trading partners from 2007 to 2017, this study simulates the export trade of Chinese bamboo and rattan products using a gravity model. Our results showed that economic size has a significant positive impact on the bilateral trade of bamboo and rattan products, while absolute distance between two major economic centers and population size have a significant negative impact. Furthermore, relevant Asia-Pacific Economic Cooperation (APEC) trade arrangements have an impact on bamboo and rattan product trade flows from China. Meanwhile, trade of bamboo and rattan between China and APEC countries such as South Korea, Canada, Russia, and Thailand shows much room for growth.

scholarly journals Trade Patterns of Bangladesh with India and China: An Empirical Evidence of the PPP Theory

2019 ◽  
Author(s):  
Kazi Ashraful Alam ◽  
Gazi Salah Uddin ◽  
Md. Mahmudul Alam
Keyword(s):  
Purchasing Power Parity ◽  
Power Parity ◽  
Trade Patterns ◽  
Long Run ◽  
Foreign Countries ◽  
Inflation Rates ◽  
Trading Partners ◽  
Trade Partner ◽  
Trade Partners ◽  
India And China

The paper examines the existence of the Purchasing Power Parity (PPP) theory for both Bangladesh and its two important trading partners- India and China. The PPP theory is an attempt to explain and perhaps more importantly measure statistically, the equilibrium rate of exchange and its variation by means of the price levels and their variations in different countries. The main purpose of the study is to get a comparative picture of trade balance between Bangladesh (home country) and two major trade partners, i.e. India and China (foreign countries) over a given period of time by using the PPP . The empirical results of the study provides an explanation of how relative inflation rates (changes of price level) between two countries can influence an exchange rate and also critically focuses on the degree of deviation between countries which may help to draw a forecast long-run movements in exchange rates. Finally the results also specify about the trade patterns among the countries and fairly conclude the efficient and beneficial trade partner in respect of Bangladesh with India and China.

scholarly journals ECONOMIC SHOCKS ON PARTNERS’ TRADE; AFRICA AND ASEAN ON CHINA

2021 ◽  
pp. 11-24
Author(s):  
Emmanuel Yamoah Cobbold ◽  
Dan Owusu
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Shocks ◽  
Macroeconomic Shocks ◽  
The World ◽  
Per Capita ◽  
The Impact ◽  
Trade Partners

This research studies the impact of macroeconomic shocks from African and the Association of Southeast Asian Nations (ASEAN) on China’s bilateral trade with them. Data on (GDP) per capita, FDI, inflation, unemployment rates, and trade openness (TO) of China’s African and ASEAN partners were sourced from the World Bank whilst imports and exports data were from the world integrated trade solutions (WITS). It uses the gravity model as a basis and the panel corrected standard errors (PCSE) as well as multivariate regression estimators. The findings reveal that per capita of China’s partners have a strong positive impact on trade with them. Trade openness is reported to increase China’s imports but reduce exports to these partners. Further, an increase in FDI inflows to China’s trade partners leads to an increase in both imports and exports of China. KEYWORDS: Economic shocks, international trade, China, Africa, ASEAN, gravity model

scholarly journals Are Economic Distance and Geographic Remoteness Important in Sustainable Trade? Evidence from the Bilateral Trade between China and Kazakhstan

2019 ◽  
Vol 11 (21) ◽  
pp. 6068 ◽  
Author(s):  
Daeheon Choi ◽  
Chune Young Chung ◽  
Jason Young
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Gravity Models ◽  
Spatial Effects ◽  
Extended Gravity ◽  
Economic Distance ◽  
Trading Partners ◽  
Geographic Remoteness ◽  
Sustainable Trade ◽  
Unobservable Factors

In this study, we investigate sustainable trade between China and Kazakhstan using the gravity model. We find that the distance between the importer and exporter relative to the distance to other trading partners, rather than the absolute distance, significantly negatively impacts trade volumes. Other factors, such as the structure and availability of free trade zones and unobservable factors related to the characteristics of the checkpoints, also affect trade volumes. To obtain these results, we derive an extended gravity model that considers spatial effects and specific features of the trade between China and Kazakhstan. Thus, we contribute to the fundamental foundations of gravity models.

scholarly journals A Panel Data Analysis of Jordan’s Foreign Trade: The Gravity Model Approach

2017 ◽  
Vol 10 (1) ◽  
pp. 204
Author(s):  
Ziad Mohammed Abu-Lila
Keyword(s):  
Foreign Trade ◽  
Gravity Model ◽  
Panel Data Analysis ◽  
Similarity Index ◽  
Factors Affecting ◽  
Dummy Variable ◽  
Bank Managers ◽  
Trading Partners ◽  
Trade Partner ◽  
Significant Factors

This study aims to identify the most important factors affecting the flow of Jordanian foreign trade, with its main trading partners for the period (1995-2016). To achieve this objective, the gravity model was adopted using a random effects model. The empirical findings show that Jordan’s foreign trade is positively determined by Jordan’s RGDP and dummy variable that used to capture the effect of a common border with Jordan. On the other side, distance and similarity index are found to be  significant factors in influencing Jordanian foreign trade negatively. Finally, the study found that the RGDP of trade partner and bilateral real exchange rate are not statistically significant. empirical evidence linking bank customers’ participation in financial ads to their attitude. Managerially, this study informs bank managers regarding effective management of financial advert contents in order to influence bank customer’s attitude towards financial adverts.

scholarly journals Foreign Trade Cooperation Technologies: Prospects and Opportunities (With China and Russia as Examples)

2019 ◽  
Vol 9 (1) ◽  
pp. 4033-4043
Keyword(s):  
Foreign Trade ◽  
Russian Federation ◽  
Bilateral Trade ◽  
Silk Road ◽  
Trade Relations ◽  
Legal Documents ◽  
Trading Partners ◽  
The Russian Federation ◽  
Trade Partners ◽  
The Silk Road

The article has analyzed the benefits and barriers of creating the Sino-Russian free trade based on the legal documents governing the formation of the Silk Road taking into account features of the economies’ development at the current stage. The main trading partners of the Russian Federation among the far-abroad countries have been identified. The structure of exports-imports of the Russian Federation with the foreign trade partners among the APEC countries has been analyzed, including the structure of the trade between China and Russia, and the volume of bilateral trade between countries. The article has analyzed the state of trade cooperation between Russia and China by industries, and also assessed the competitiveness of the trading environment of the Silk Road countries. The authors have compared the parametric characteristics of Russia and China, and also forecasted the changes in the commodity structure of imports and exports for the Russian-Chinese foreign trade relations.

scholarly journals The Trade Of Indonesian Spice Comodities In International Market

Agro Ekonomi ◽  
2019 ◽  
Vol 30 (1) ◽  
Author(s):  
Herdiana Anggrasari ◽  
Jangkung Handoyo Mulyo
Keyword(s):  
Secondary Data ◽  
International Market ◽  
Trade Patterns ◽  
Market Intelligence ◽  
Commodity Export ◽  
Trading Partners ◽  
Trade Partner ◽  
Spice Trade ◽  
Trade Partners

This research is aimed to (1) observe the trade patterns and domination export in the spice commodities between Indonesia in international market and the countries as its main trade partners, and (2) observe the performance of the export and import in industry of Indonesia spices with its trade partner countries. Grubel-Lloyd Index (GLI) were used to detect whether the trade patterns in spice industry is as intra-industry or as inter-industry as well as to figure out the domination of the spice commodity export of Indonesia to its trade partner countries. The performance of the export and import in spice industry could be analyzed using the share of export and import between Indonesia and its trade partner countries. This research used the secondary data obtained from UNComtrade in a 15-year period (2002-2016) by concerning with a number of the main trade partner countries. The results of the research showed that the trade of Indonesian spice commodities in international market and among its main trade partners is categorized as a partial industry. Indonesia overall dominates the spice trade with its main trading partners; thus, the trade balance of Indonesian spice commodities is surplus. It is only with China and India in which the trade pattern is categorized as the intra-industry. Government needs to do some various efforts to encourage the increase of exports of Indonesian spices in the international market by developing market intelligence, enhancing the role of attachés in the spice trade diplomacy in the partner countries and potential countries.

scholarly journals Determinants of Bilateral Trade Flows Between Vietnam and Trading Partner Countries – Gravity Model Approach

2021 ◽  
Vol Volume II (December 2021) ◽  
pp. 128-142
Author(s):  
Le Khuong Ninh ◽  
Phan Anh Tu ◽  
Pham Thi Nhu Hao
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Trade Openness ◽  
Trade Agreement ◽  
Trade Flows ◽  
Population Exchange ◽  
Economic Distance ◽  
Trading Partners ◽  
Bilateral Trade Flows ◽  
Convergence Method

This study uses the gravity model to investigate the bilateral trade flows between Vietnam and 52 countries from 2001 through 2011. The data are collected from International Trade Centre (ITC), International Monetary Fund (IMF), and the World Bank (WB). The results show that economic size, geographical distance, economic distance, technological innovation, trade openness, free trade agreement, population, exchange rate, and common border affect the bilateral trade flows between Vietnam and these 52 countries. More importantly, this study uses the speed-of-convergence method to find new potential trading partners for Vietnam, such as those in Africa and Southwest Asia.

scholarly journals The Effects of ASEAN-China Free Trade Agreement on Bilateral Trades

2021 ◽  
Vol 56 (2) ◽  
pp. 249-256
Author(s):  
Colin Koh-King Wong ◽  
Venus Khim-Sen Liew ◽  
Mohammad Affendy Arip
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Positive Finding ◽  
Trade Area ◽  
Asean Member ◽  
Trading Partners

This article adopts the augmented versions of the Gravity Model to examine the effects of the signing of the ASEAN-China Free Trade Agreement (ACFTA) on the bilateral aggregate trades. Specifically, ACFTA dummy variables are incorporated in the basic model is to estimate the direction and magnitude of the ACFTA effects. A total of 79 trading partners of ASEAN member countries plus China were examined in this article. The study finds that the Gross Domestic Product, population, natural endowment, distance, and common language are the main determining factors of the bilateral trade for ASEAN member countries and their trading partners. Estimated results from this Augmented Gravity Model showed that ACFTA had increased the bilateral aggregate trades not only between intra-bloc member countries but also intra-bloc and extra-bloc countries. With this positive finding, ASEAN and China could consider expanding their free trade area to a broader regional perspective, enhancing economic growth and reducing regional inequality.

scholarly journals Compositional Effect and Distance Sensitivity: Examining the Distance Elasticity in China and Indonesia Trade Activities

2019 ◽  
Vol 8 (1) ◽  
pp. 79-92
Author(s):  
Putu Mahardika Adi Saputra
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Empirical Method ◽  
Trade Data ◽  
Compositional Effect ◽  
Trading Partners

This paper analyzes the change in distance elasticity of trade using bilateral trade data among China and Indonesia and their main trading partners. The empirical method used in this study derived from the gravity model that considers the effect of distance on trade activities behavior. Two causes of change in the elasticity of trade to distance will be exposed, i.e., the distance sensitivity effect (within industries) and the compositional effect (among industries). Specifically, this study would like to prove whether the distance sensitivity effect is more dominant than the compositional effect in explaining the change in distance elasticity of trade. By using four sub-periods and around two hundred industries involved, the result shows that the increase in the role of distance in trade heavily caused by the escalation of distance sensitivity effect in most industries.

Sign in / Sign up

Export Citation Format

Share Document