COINTEGRATION APPROACH TO ESTIMATING BILATERAL TRADE ELASTICITIES BETWEEN U.S. AND HER TRADING PARTNERS

1999 ◽  
Vol 13 (4) ◽  
pp. 119-128 ◽  
Author(s):  
MOHSEN BAHMANI-OSKOOEE ◽  
TAGGERT J. BROOKS
Keyword(s):  
Bilateral Trade ◽  
Trade Elasticities ◽  
Trading Partners

Bilateral Trade Elasticities Sweden Versus Her Major Trading Partners

2005 ◽  
Vol 3 (2) ◽  
Author(s):  
Abdulnasser Hatemi-J ◽  
Keyword(s):  
Trade Balance ◽  
Bilateral Trade ◽  
Unit Roots ◽  
Policy Implications ◽  
Cross Sectional ◽  
Exchange Rate Fluctuations ◽  
Trade Elasticities ◽  
Long Run ◽  
Highly Sensitive ◽  
Trading Partners

This study explores the long-run bilateral trade elasticities between Sweden and its six major trading partners for the period 1960-1999. Tests for unit roots and cointegration in a panel perspective are conducted. The estimated cross sectional trade elasticities show that trade is highly sensitive to changes in income but less sensitive to real exchange rate fluctuations. The bilateral trade elasticities disclose that the MarshallLerner condition is not satisfied (except for Germany) and real depreciation of the Swedish currency has less favorable impact on the trade balance. The policy implications of our findings are also discussed.

The Investment Provisions of the Canada—United States Free Trade Agreement: A Canadian Perspective

1990 ◽  
Vol 84 (2) ◽  
pp. 394-443 ◽  
Author(s):  
Jean Raby
Keyword(s):  
United States ◽  
Free Trade ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Good Deal ◽  
Trade Agreement ◽  
Ronald Reagan ◽  
The United States ◽  
The World ◽  
Trading Partners

This is a good deal, a good deal for Canada and a deal that is good for all Canadians. It is also a fair deal, which means that it brings benefits and progress to our partner, the United States of America. When both countries prosper, our democracies are strengthened and leadership has been provided to our trading partners around the world. I think this initiative represents enlightened leadership to the trading partners about what can be accomplished when we determine that we are going to strike down protectionism, move toward liberalized trade, and generate new prosperity for all our people.On January 2, 1988, President Ronald Reagan of the United States and Prime Minister Brian Mulroney of Canada signed the landmark comprehensive Free Trade Agreement (FTA) between the two countries that already enjoyed the largest bilateral trade relationship in the world. The FTA was subsequently ratified by the legislatures of both countries, if only after a bitterly fought election on the subject in Canada. On January 1, 1989, the FTA formally came into effect.

Endogenous Preferential Trade Agreements: An Empirical Analysis

2003 ◽  
Vol 2 (1) ◽  
Author(s):  
Christopher S Magee
Keyword(s):  
Political Economy ◽  
Empirical Analysis ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
The Political ◽  
Preferential Trade ◽  
Trading Partners ◽  
Regional Agreements

Abstract This paper provides one of the first assessments of the hypothesis that two countries are more likely to form a preferential trade agreement (PTA) if they are already major trading partners. The paper also tests a number of predictions from the political economy literature about which countries are expected to form regional agreements. The results show that countries are more likely to be preferential trading partners if they have significant bilateral trade, are similar in size, and are both democracies. Finally, the paper measures the effect of preferential agreements on trade volumes while, unlike previous studies, treating PTA formation as endogenous.

scholarly journals The Formation of AFTA and Trade Diversion: Evidence from China’s Agricultural Exports

2016 ◽  
Vol 17 (1) ◽  
pp. 25-36
Author(s):  
Nguyen Khanh Doanh ◽  
Jeehoon Lee ◽  
Yoon Heo
Keyword(s):  
Panel Data ◽  
Free Trade Agreement ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Trade Diversion ◽  
Trade Flows ◽  
Agricultural Products ◽  
Agricultural Exports ◽  
Trading Partners ◽  
Bilateral Trade Flows

This study analyzes the impacts of the formation of AFTA (ASEAN Free Trade Agreement) on China’s agricultural exports. The Hausman-Taylor analysis is applied to panel data collected from China and its 68 trading partners from 1993–2012. Our major findings areas follows. First, the discrimination in tariffs imposed by AFTA diverts trade in agricultural products from China toward AFTA’s member countries. Second, at the sectoral level, the trade diversion effects of AFTA’s formation on China’s exports are significant in the case of beverage and tobacco industries. AFTA and China need to focus more on diversifying and differentiating their farming products. To gain better access to AFTA’s market, more investment in research and development activities is recommended as a cure for Chinese farmers. Moreover, this study implies that more efforts in reducing tariff and non-tariff barriers to further liberalize trade between China and AFTA could enhance their bilateral trade flows.

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 Exchange Rate Dynamics and the Bilateral Trade Balance: The Case of U.S. Agriculture

2009 ◽  
Vol 38 (2) ◽  
pp. 213-228 ◽  
Author(s):  
Jungho Baek ◽  
Won W. Koo ◽  
Kranti Mulik
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Bilateral Trade ◽  
Time Series Data ◽  
The United States ◽  
Agricultural Trade ◽  
Agricultural Products ◽  
Series Data ◽  
J Curve ◽  
Trading Partners

This study examines the dynamic effects of changes in exchange rates on bilateral trade of agricultural products between the United States and its 15 major trading partners. Special attention is paid to investigate whether or not the J-curve hypothesis holds for U.S. agricultural trade. For this purpose, an autoregressive distributed lag (ARDL) approach to cointegration is applied to quarterly time-series data from 1989 and 2007. Results show that the exchange rate plays a crucial role in determining the short- and long-run behavior of U.S. agricultural trade. However, we find little evidence of the J-curve phenomenon for U.S. agricultural products with the United States’ major trading partners.

Why NTM is a Challenge in Trade Relations? Evidence from India–Africa Agricultural Trade

2020 ◽  
Vol 12 (2) ◽  
pp. 79-103 ◽  
Author(s):  
Chandan Kumar ◽  
Nalin Bharti
Keyword(s):  
Bilateral Trade ◽  
Agricultural Trade ◽  
Rapid Expansion ◽  
Complex Nature ◽  
Trade Barriers ◽  
Trade Restrictions ◽  
Coverage Ratio ◽  
Agriculture Sector ◽  
Wide Range ◽  
Trading Partners

India and Africa have experienced the rapid expansion of bilateral trade during the last two decades. The India–Africa trade is understudied in general and in the agriculture sector. Very few considerable efforts have been made to study the agro-trade restrictions between both the economies. Therefore, the purpose of this paper is to empirically identify the recent evidence of non-tariff measures (NTMs) imposed on the agro-products between India and Africa, which also work as non-tariff barriers. It is perceived that India being one of the frequent users of NTMs in the world poses many challenges for its trading partners. Based on the Revealed Trade Barrier (RTB) index, using 28 agro-products (HS-4 digit level), this paper assesses bilateral agro-trade barriers. The frequency index ( Fi) and coverage ratio ( Cr) were used to analyse the complex nature of NTMs. The study findings show that both trading partners imposed a wide range of NTMs on each other’s agro-products, which resulted in the discriminatory effects on trade. Comparatively, India has imposed the lesser number of NTMs on Africa’s agro-products. Despite the recent bilateral trade agreements between both the economies, trade barriers were frequently noticed. The paper suggests applying strategic trade policies and reduction of NTMs along with harmonisation of standards to flourish the bilateral agro-trade.

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