Australia’s Free Trade Agreements (FTAs) and Potentiality of Wheat Exports: A Panel Gravity Model Approach

2021 ◽  
pp. 1-28
Author(s):  
Krishna P. Timsina ◽  
Richard Culas
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Model Approach

scholarly journals Who benefits of trade with China? Examining the effects of free trade agreements on trade flow with China using an adjusted gravity model

2021 ◽  
Vol 14 (3) ◽  
pp. 9-25
Author(s):  
Sigurður Guðjonsson ◽  
Inga Minelgaite ◽  
Hrafnhildur Kristinsdóttir ◽  
Jelena Stankevičienė
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Trade Flow ◽  
Free Trade Agreements ◽  
Trade Agreements

scholarly journals Heterogeneous Impacts of Free Trade Agreements: The Case of Japan

2019 ◽  
Vol 18 (2) ◽  
pp. 1-20
Author(s):  
Kenta Yamanouchi
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Fixed Effects ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Creation ◽  
Trade Data ◽  
Trade Partners

This paper investigates the trade creation effects of Japan's free trade agreements (FTAs) using aggregate trade data for the years 1996–2015. We estimate various specifications of a gravity model. Our main finding is that the effects of Japan's FTAs are not clearly observed when the gravity model is specified with three types of fixed effects (i.e., exporter-year fixed effects, importer-year fixed effects, and country-pair fixed effects). In fact, the effects of FTAs vary substantially among trade partners and around half of the FTAs increase Japan's trade values. Our results also suggest that FTAs with small trade partners tend to have large effects on Japan as well as other countries. Recently enforced FTAs, however, increase Japan's import values more rapidly.

scholarly journals Determinants of Trade Flows between Colombia and South Korea

2020 ◽  
Vol 39 (70) ◽  
Author(s):  
Sandra Daniela Ariza Marin
Keyword(s):  
Panel Data ◽  
South Korea ◽  
Gravity Model ◽  
Free Trade ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Asian Country ◽  
Trade Flows ◽  
Industrial Products

  This paper identifies the determinants of trade flows between Colombia and South Korea. For this purpose, the economic and commercial profile for both countries, bilateral trade and the signed FTA were analyzed. Likewise, a gravity model for total and sectorial trade with panel data for the period of 1993-2013 is applied, finding consistencies with the theoretical postulates. Variables such as income of the importer and exporter countries determine positive and significant bilateral trade, while the distance and landlocked decrease the likelihood of trade. Furthermore, the results of the gravity model indicate that the free trade agreements have no significant impact on trade of South Korea; however, from the analysis of the agreement it is considered that Colombian agricultural and agro-industrial products have potential opportunities to compete in the Asian country.

Pakistan’s Global Trade Potential: A Gravity Model Approach

2019 ◽  
Vol 20 (6) ◽  
pp. 1361-1371 ◽  
Author(s):  
Shujaat Abbas ◽  
Abdul Waheed
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
South Asian ◽  
Regional Integration ◽  
Positive Impact ◽  
Trade Flow ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Relative Price ◽  
Trade Potential

The international trade of Pakistan is highly concentrated on a few goods and markets. This study investigates macroeconomic behaviour of trade flow and explores potential trade markets for Pakistan using an augmented gravity model on a large panel of 47 cross-sections from 1980 to 2013. The result of standard gravity variables shows consistent findings with statistically significant t-statistics, whereas augmented variables reveal that relative price has a positive impact with lower price elasticity. The result of binary variables shows that Pakistan’s trade is more with countries having the same language, whereas lower trade is observed with bordering countries. The result of South Asian Free Trade Agreement (SAFTA) revealed ineffectiveness of regional integration on the creation of trade for Pakistan, whereas, bilateral free trade agreements (BFTAs) have created considerable trade. The finding of trade potential revealed exhausted potential with major trading partners and there is a need for greater trade diversification from exhausted to potential countries. It has higher untapped potential with Nepal, Iraq, India, Philippines and Jordan, respectively, in Asia, whereas European countries have the highest potential. The results concluded that Pakistan can diversify its trade from exhausted to potential countries through individual BFTAs and multilateral free trade agreements. South Asian countries should address their disputes and revisit SAFTA aiming to improve regional trade and growth.

Evaluating Asian Free Trade Agreements: What Does Gravity Model Tell Us?

2020 ◽  
Vol 56 (1) ◽  
pp. 60-70
Author(s):  
Sunder Ramaswamy ◽  
Abishek Choutagunta ◽  
Santosh Kumar Sahu
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Flows ◽  
Transport Infrastructure ◽  
Total Trade ◽  
Jel Codes ◽  
Positive Effects ◽  
Negative Effect

This paper evaluates the performance of Free Trade Agreements (FTAs) by analysing the determinants of trade flows of Asian economies for a panel of 31 countries during 2007–2014 using a Gravity model. The estimated results suggest that certain FTAs negatively contribute to trade flows across the region and, that GDP and population, among other factors, can explain total trade flows. This study also finds that trade costs using distance as a proxy has a significant and negative effect on trade. Our results are in-line with the expectations which can be drawn by looking at trends of trade flows in Asia. Thus, a case is attempted for smoothening trade-flows across the region by reducing tariff and non-tariff barriers, pumping in investments on transport infrastructure and improving productivity of the partners as a whole which has positive effects on GDP and thus trade. JEL Codes: F13, F14, C23

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