scholarly journals Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows

2003 ◽  
Vol 6 (2) ◽  
pp. 291-316 ◽  
Author(s):  
Inmaculada Martinez-Zarzoso ◽  
Felicitas Nowak-Lehmann
Keyword(s):  
European Union ◽  
Gravity Model ◽  
Trade Flows ◽  
Empirical Application

TRADE FLOWS BETWEEN CIS COUNTRIES: DOES THE GRAVITY MODEL WORK NOW?

2020 ◽  
Author(s):  
Ольга Сергеевна Чудинова ◽  
Екатерина Николаевна Корнейченко ◽  
Ольга Борисовна Чаганова ◽  
Анастасия Михайловна Ротова
Keyword(s):  
Gravity Model ◽  
World Trade ◽  
Trade Flows ◽  
Cis Countries

В статье представлены результаты проверки адекватности гравита-ционной модели в условиях глобализации мировой торговли. По статистическим данным для стран СНГ за 2011-2018 годы на основе гравитационной модели исследовано влияние масштаба экономики торговых партнеров и расстояния между странами на объем импорта. The article presents the results of assessing the adequacy of the gravity model in the context of world trade globalization. According to statistics for the CIS countries for 2011-2018 the effect of size of economies and distance between the countries on import volumes is studied on the basis of gravity model.

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.

The Determinants of Vietnam’s Information and Communication Technologies Exports to the European Union

2022 ◽  
pp. 001573252110579
Author(s):  
Phan Thanh Hoan ◽  
Duong Thi Dieu My
Keyword(s):  
European Union ◽  
Information And Communication Technologies ◽  
Gravity Model ◽  
Patent Application ◽  
Communication Technologies ◽  
Policy Implications ◽  
The European Union ◽  
Factors Affecting ◽  
Information And Communication ◽  
The Eu

Vietnam is one of the top information and communication technologies (ICT) exporters globally, and the ICT products constitute nearly one-fifth of Vietnam’s total exports to the European Union (EU). This study empirically investigates the determinants of Vietnam’s ICT exports to the EU by applying the gravity model for trade with panel data from 2000 to 2019. Besides the traditional variables of the gravity model, we added gross capital formation, patent application and exchange rates as explanatory variables. The results show that among factors affecting Vietnam’s ICT export to the EU, market size, patent applications, and exchange rate are the most significant determinants. The article also suggests some policy implications for the development of ICT exports between the two parties. JEL Codes: F14, C2

Free Trade Agreement between Tunisia and the European Union, Do Institutions Matter?: An Empirical Validation by A Gravity Model

2015 ◽  
Vol 5 (2) ◽  
pp. 19-36
Author(s):  
Anis Kacem
Keyword(s):  
European Union ◽  
International Trade ◽  
Gravity Model ◽  
Free Trade ◽  
Spatial Econometrics ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The European Union ◽  
Institutional Dimension ◽  
North And South

Tunisia has signed a free trade agreement with the European Union in 1996, which provides for the reduction of tariff barriers between Tunisia and the EU. In this article, we aim to know and test whether the similarity of the institutional framework has to stimulate international trade between Tunisia and the European Union. In this context, we built a variable called “Institutional distance” to valid the institutional dimension of international trade, near borders effects reported in the literature. To this end, a gravity model was used initially (Tunisia and 21 European countries). Secondly, the estimate shows the existence of spatial autocorrelation. The latter has been corrected using spatial econometrics. The results show that the geographical distance remains more important than the institutions in this type of agreement between north and south shores of the Mediterranean.

scholarly journals Estimating the Impact of ASEAN China Free Trade Agreement on Indonesia’s Trade Balance

2019 ◽  
Vol 1 (1) ◽  
pp. 18-37
Author(s):  
Muhammad Arif Junaidi
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Significant Role ◽  
Trade Balance ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Trade Flows ◽  
Insignificant Effect ◽  
Asean Countries ◽  
The Impact

Using trade flows data of ASEAN countries and China from 2002 to 2017, this studyestimates the impact of ACFTA on ASEAN countries and China’s trade balance in general,and also for Indonesia’s trade balance in specific by elaborating the impact of ACFTA onthe trade flows both exports and imports. Using the gravity model and estimating by OLSand PPML, this paper finds that the impact of tariffs elimination due to the implementationof ACFTA increased exports and imports for ASEAN countries and China in general, andfor Indonesia in particular. However, the aggregate trade balances of ASEAN membercountries and China is zero since the impact of ACFTA on imports offset the impact ofACFTA on exports. Tariff’s elimination due to the implementation of ACFTA on Indonesiashows a negative and statistically insignificant effect on imports and exports. Thus, tariffshave not played significant role on increasing Indonesia’s exports and imports. As a result,the impact of ACFTA on Indonesia’s trade balance cannot be quantified clearly since theimpact of tariffs on exports and imports are not significant.

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