Analysis of the influence factors of international trade flows based on the trade gravity model and the data of China's empirical

2014 ◽  
Author(s):  
He Huang
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Influence Factors ◽  
Trade Flows ◽  
Trade Gravity Model

scholarly journals Effect of preferential trade agreements on China’s energy trade from Chinese and exporters’ perspectives

2018 ◽  
Vol 13 (6) ◽  
pp. 1776-1797 ◽  
Author(s):  
Philipp Galkin ◽  
Carlo Andrea Bollino ◽  
Tarek Atalla
Keyword(s):  
Gravity Model ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Trade Flows ◽  
Model Framework ◽  
Preferential Trade ◽  
Content Type ◽  
Energy Trade ◽  
Energy Products ◽  
Trade Gravity Model

Purpose China is a major energy import powerhouse, its trade deals have significant impact on international energy trade and global energy markets. The purpose of this paper is to explore the role of energy in China’s preferential trade agreements (PTAs) and their impact on Chinese imports of oil, gas and coal. Design/methodology/approach An extended trade gravity model framework is applied to explore the dynamics of China’s annualized energy import flows from the 22 economies that have PTAs with it for the period 1995–2015. Findings The effect of PTAs on trade patterns varies across the product groups and agreement clauses. The dominant factor affecting trade flows of coal, crude oil and oil products is the average tariff level. Its impact is less significant for gas imports, which are more affected by policy arrangements represented by a PTA variable. The depth and scope of a PTA do not affect Chinese energy imports patterns. Research limitations/implications This paper is focused on exploring the effect of China’s trade and foreign relations strategies on its energy imports through the prism of its PTAs. Estimating the direct impact of China’s initiatives in the areas of trade, investment, security, culture, etc., on its trade flows of energy products and other product groups using the methodological framework proposed in this study would contribute to better understanding of the issue. Practical implications The findings can assist both China and energy exporting countries that target Chinese market in better understanding the drivers of trade flows of energy products and design their PTA strategies accordingly. Originality/value This study applies the trade gravity model framework to assess the impact of specific components of preferential trade agreements – tariff reduction and depth and scope of agreement – on energy trade flows differentiated by product group.

scholarly journals International trade and endogenous standards: the case of GMO regulations

2012 ◽  
Vol 11 (3) ◽  
pp. 415-437 ◽  
Author(s):  
MAURO VIGANI ◽  
VALENTINA RAIMONDI ◽  
ALESSANDRO OLPER
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Bilateral Trade ◽  
Composite Index ◽  
Trade Flows ◽  
Agricultural Products ◽  
Approval Process ◽  
Bilateral Trade Flows ◽  
Gmo Regulation ◽  
Bilateral Differences

AbstractThis paper quantifies the effect of GMO regulation on bilateral trade flows of agricultural products. We develop a composite index of GMO regulations and using a gravity model we show that bilateral differences in GMO regulation negatively affect trade flows. This effect is especially driven by labeling, approval process, and traceability. Our results are robust to the endogeneity of GMO standards to trade flows.

International Trade of Albania. Gravity Model

2014 ◽  
Vol 2 (1) ◽  
pp. 220 ◽  
Author(s):  
Abdulmenaf Sejdini ◽  
Ilirjana Kraja
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Free Trade Agreements ◽  
Economic Globalization ◽  
Trade Agreements ◽  
Trade Flows ◽  
Key Factors ◽  
Major Development ◽  
Social And Economic Development ◽  
Technological Developments

Today we live in a world where such economic globalization and technological developments have created many advantages but also shortcomings regarding social and economic development of different countries of the world. Since the beginning of the transition until the trade regime now, our country has undergone profound changes. Therefore, the aim of this paper is to see the major development steps of international trade in Albania over the years and look at the key factors that have contributed to it. The paper provides some theoretical and empirical considerations regarding trade development with the focus on export-imports in our country in relation to the Free Trade Agreements, as these have affected Albania's international trade. Specifically, it offers an application of the Gravity Model of Trade for Albanian case in relation to its 27 export/import countries. The findings from the model application result in stable trade flows for Albania.

Distances Matter

2011 ◽  
Author(s):  
Victor Ginsburgh ◽  
Shlomo Weber
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Voting Behavior ◽  
Trade Flows ◽  
Universal Gravitation ◽  
Literary Works ◽  
Linguistic Differences ◽  
Frequent Application ◽  
Eurovision Song Contest ◽  
Country Differences

The linguistic, genetic, and cultural distances discussed in Chapter 3 have important applications, and many economists have shown that they matter greatly. This chapter focuses on inter-country differences and their impact on trade, migration, translations, and certain aspects of voting behavior. Most applications of intercountry linguistic differences are based on what is now known as the gravity model, whose name comes from its analogy with Newton's 1687 law of universal gravitation. Section 1 is devoted to the best-known and most frequent application of the gravitational analogy: international trade flows. Section 2 discusses migrational flows. Section 3 analyzes the number of translations of literary works into and from various languages, whereas section 4 is devoted to a description of countries' voting patterns in the annual international Eurovision Song Contest.

scholarly journals Determining the economic impact of cryptocurrency adoption on international trade from a gravity model framework

2021 ◽  
Author(s):  
Eric R. Chen
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Global Economy ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Regression Analyses ◽  
Model Framework ◽  
Aggregated Data ◽  
Weak Institutions ◽  
Bilateral Trade Flows

As cryptocurrencies develop and circulate at greater rates, countries have appeared to consider the technology as an adoptable medium of exchange. By expanding the influence of cryptocurrencies through adoption, countries raise its impact on the global economy. This paper is the first to apply an augmented version of the gravity model to examine the effects of global cryptocurrency adoption on international trade. This empirical study involves aggregating datasets on U.S. bilateral trade flows, gravity variable statistics, and the adoption of cryptocurrencies. In application of the gravity model, regression analyses are used on the aggregated data to test the magnitude of cryptocurrencies’ impact on trade. Based on the overall findings, the variables for cryptocurrency adoption produce negative coefficients suggesting a negative correlation between the adoption of cryptocurrencies and international trade. The central tendency in the empirical evidence offers the interpretation that countries with weak institutions to promote trade are more likely to adopt cryptocurrencies resulting in a negative association between cryptocurrency adoption and trade.

scholarly journals Why should the gravity model be taught in business education?

2020 ◽  
Vol 14 (1) ◽  
pp. 422-433
Author(s):  
Anca Tamaş
Keyword(s):  
International Trade ◽  
Gravity Model ◽  
Business Education ◽  
Cultural Distance ◽  
Technological Development ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Trade Flows ◽  
Analysis Tool ◽  
Foreign Direct Investments

AbstractThe aim of this paper is to critically analyze the papers from the literature mainstream regarding the gravity model and to identify the main findings. The paper highlights the importance of studying the gravity model in the tertiary business education. Introduced by Tinbergen (1962), the gravity model was widely used to analyze the international trade flows in theoretical, as well as empirical studies. Alongside the classical determinants, economy size, market size and geographical distance, other variables which influence the trade flows were found: trade agreements, foreign direct investments, exchange rate, trade taxes, cultural distance, migration, remoteness, knowledge capital, technological development. There are many controversies regarding the zeroes problem within the model, as well as many controversies on the solutions of the zeroes problem. A meta-analysis and systematic review of the relevant literature in the last 56 years was conducted. From author’s knowledge, this study is the most extended literature review on the gravity model, covering more than 50 years of research. Despite all the theoretical controversies, the gravity model proved to be a robust one, with a great power of explanation in more than 80% of the dynamics and structure of the trade flows. Therefore, the gravity model should be considered a valuable analysis tool in teaching and studying in tertiary business education: international trade, econometrics, statistics, trade policy and so on.

scholarly journals The effectiveness of trade map as tool for measuring the trade potential between South Africa and China

2010 ◽  
Vol 8 (1) ◽  
pp. 463-473
Author(s):  
Cornelius Bothma ◽  
Michael Colin Cant
Keyword(s):  
South Africa ◽  
International Trade ◽  
Gravity Model ◽  
Good Alternative ◽  
Trade Flows ◽  
Complete Analysis ◽  
Online Tool ◽  
Perfect Model ◽  
Trade Potential ◽  
National Trade

Measuring the trade potential between two countries is an important task both for the national trade analyst as well as for the company researcher. Trade potential is commonly measured using the gravity model, an economic construct. The gravity model, however, is not a perfect model and has its detractors. More recently, the International Trade Centre developed Trade Map an online tool for analysing the trade flows between countries. Although not yet widely used, Trade Map appears to be to good alternative or complementary facility that can be used to measure trade potential. The purpose of this article is to report on the evaluation of Trade Map as a tool for measuring trade potential. In so doing, Trade Map was used to analyse the trade potential between South Africa and China. It was found that Trade Map can provide the international trade researcher with a rich width and depth of information on the trade potential between two countries. It is suggest that Trade Map should be used together with the gravity model to create a more complete analysis of trade potential

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