Gravity Model by Panel Data Approach: An Empirical Application with Implications for the ASEAN Free Trade Area

2009 ◽  
Vol 26 (3) ◽  
pp. 266-277 ◽  
Author(s):  
Nguyen Trung Kien
Keyword(s):  
Panel Data ◽  
Gravity Model ◽  
Free Trade ◽  
Free Trade Area ◽  
Empirical Application ◽  
Trade Area

Trade Blocks and the Gravity Model: Evidence from Western Hemispheric Countries

2009 ◽  
Vol 10 (2) ◽  
pp. 136-156
Author(s):  
E.M. Ekanayake ◽  
Amit Mukherjee ◽  
Bala Veeramacheneni
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Flows ◽  
Western Hemisphere ◽  
Regional Trade ◽  
Trade Area ◽  
Model Evidence ◽  
Using Data ◽  
Trade Blocks

We analyze the major trade blocks in Western Hemisphere and their effects on intra-regional trade flows using data for the period 1980-2006. We use an augmented gravity model to estimate the effect of various trade blocks on trade flows within and across membership other Western Hemispheric countries. The findings of this study are consistent with findings of previous studies on Western Hemisphere trade flows and shed some light on whether the proposed Free Trade Area of the Americas is beneficial or not for Western Hemispheric countries.

scholarly journals The Effect of ASEAN-China Free Trade Area (ACFTA) on Indonesia Export

ETIKONOMI ◽  
2016 ◽  
Vol 15 (2) ◽  
pp. 125-138
Author(s):  
Indriyani Indriyani
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
Cross Section ◽  
Data Model ◽  
Free Trade Area ◽  
Fixed Effect ◽  
Panel Data Model ◽  
Phnom Penh ◽  
Trade Area ◽  
Asean Countries

ASEAN-China Free Trade Area (ACFTA) is an agreement between the members of ASEAN and China to create a free trade area by removing tariff and non-tariff barriers. This agreement begins with the signing of the agreement on November 5, 2002 in Phnom Penh. Implementation is done in phases beginning January 1, 2004. The purpose of this study determines the effect of the implementation of ACFTA on Indonesia's exports to the ASEAN countries and China. This study complements previous research regarding the ACFTA. The data used in this study are the data of Indonesian exports to ASEAN countries and China for 15 years from 2000 until 2014. The tests were conducted with a fixed effect panel data model with cross section SUR. The results of this study indicate that the ACFTA increase Indonesian exports to the ASEAN countries and China.DOI: 10.15408/etk.v15i2.3331

scholarly journals Dampak ACFTA (ASEAN-China Free Trade Area) Terhadap Trade Creation Dan Trade Diversion Indonesia Di Kawasan ACFTA+3

2020 ◽  
Vol 8 (1) ◽  
pp. 84-100
Author(s):  
Siti khamila Dewi ◽  
Sahara ◽  
Sri Mulatsih
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
World Bank ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Trade Area

Indonesia terlibat aktif dalam jejaring kerjasama Free Trade Area (FTA), salah satunya dengan menjadi anggota pada ASEAN-China FTA atau dikenal juga dengan ACFTA. Studi ini bertujuan untuk menganalisis faktor yang memengaruhi nilai impor Indonesia dan mengetahui dampak ACFTA terhadap trade creation dan trade diversion Indonesia. Penelitian menggunakan pendekatan model panel data dengan data sekunder selama periode tahun 2000 hingga 2018 yang dikumpulkan dari WITS, WORLD BANK, UNCTAD, dan CEPII. Hasil empiris menunjukkan bahwa setelah ACFTA diberlakukan, nilai impor Indonesia dari negara-negara anggota ACFTA mengalami kenaikan. Nilai impor Indonesia secara signifikan dipengaruhi secara positif oleh GDP per kapita Indonesia, GDP per kapita mitra dagang (negara ACFTA+3), dan jarak ekonomi antar negara. Sementara nilai tukar riil antar negara berpengaruh negatif terhadap nilai impor Indonesia. Secara keseluruhan Indonesia diduga mengalami kerugian dari adanya ACFTA akibat terjadinya trade diversion dari negara non-anggota ke negara-negara anggota di wilayah ACFTA +3.

scholarly journals ANALISIS PENERAPAN ASEAN-INDIA FREE TRADE AREA (AIFTA) TERHADAP PERDAGANGAN DUA NEGARA INDONESIA DENGAN INDIA MENGGUNAKAN GRAVITY MODEL

2018 ◽  
Vol 11 (2) ◽  
pp. 35-48
Author(s):  
Janes Guratan Djermor ◽  
Ivan Yulianto
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Normal Level ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Transportation Costs ◽  
Trade Relations ◽  
Trade Area ◽  
Using Data

The ASEAN-India Free Trade Area (AIFTA) policy has been effectively run since January 1, 2010. It is time to evaluate its benefits for trade relations between its members, especially between Indonesia and India. Analysis of the effectiveness and benefits of AIFTA policy in this study uses the Gravity Model by calculating the variables of Indonesia's GDP, India's GDP, transportation costs, and AIFTA's policies enggaged in trade relations between Indonesia and India using data from first quarter of 2004 until first quarter of 2018. This research shows that implementation of AIFTA does not have any effect on trade between two countries since trade between them had already reaching normal level. This research wishes to give a better insight on policy taking, especially for ongoing and forthcoming trade agreement.

scholarly journals Competitiveness and Determinant of Indonesian Processed Cocoa Demand in the AANZFTA Framework

2020 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Renery Yemima ◽  
Tanti Novianti
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Tariff Policy ◽  
Cacao Butter ◽  
Trade Area ◽  
Export Competitiveness ◽  
Total Exchange

Indonesia is one of the biggest producer of cacao beans in the world.Export tariff policy on cacao bean and countries trade agreement wasexpected can increase the processed of cacao export. This researchaims to analyze the competitiveness and the determinants of whichaffect the processed cacao export in AANZFTA Region countries.Based on RCA anaylsis, the processed cacao has been comparativeadvantage, and its EPD analysis show that Indonesia’s processedcacao mostly in falling star and retreat condition. The result ofregression analysis panel data showed that the export of cacao pastewas affected significantly by exchange rate, Indonesia’s exportcompetitiveness, and free trade area policy. Cacao butter was affectedsignificantly by exchange rate, Indonesia’s export competitiveness, andfree trade area policy. Cacao powder was affected significantly bygross domestic product total, exchange rate, Indonesia’s exportcompetitiveness, and free trade area policy.

scholarly journals Dampak ACFTA (ASEAN-China Free Trade Area) Terhadap Trade Creation Dan Trade Diversion Indonesia Di Kawasan ACFTA+3

2020 ◽  
Vol 8 (1) ◽  
pp. 84-100
Author(s):  
Siti khamila Dewi ◽  
Sahara ◽  
Sri Mulatsih
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
World Bank ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Trade Area

Indonesia terlibat aktif dalam jejaring kerjasama Free Trade Area (FTA), salah satunya dengan menjadi anggota pada ASEAN-China FTA atau dikenal juga dengan ACFTA. Studi ini bertujuan untuk menganalisis faktor yang memengaruhi nilai impor Indonesia dan mengetahui dampak ACFTA terhadap trade creation dan trade diversion Indonesia. Penelitian menggunakan pendekatan model panel data dengan data sekunder selama periode tahun 2000 hingga 2018 yang dikumpulkan dari WITS, WORLD BANK, UNCTAD, dan CEPII. Hasil empiris menunjukkan bahwa setelah ACFTA diberlakukan, nilai impor Indonesia dari negara-negara anggota ACFTA mengalami kenaikan. Nilai impor Indonesia secara signifikan dipengaruhi secara positif oleh GDP per kapita Indonesia, GDP per kapita mitra dagang (negara ACFTA+3), dan jarak ekonomi antar negara. Sementara nilai tukar riil antar negara berpengaruh negatif terhadap nilai impor Indonesia. Secara keseluruhan Indonesia diduga mengalami kerugian dari adanya ACFTA akibat terjadinya trade diversion dari negara non-anggota ke negara-negara anggota di wilayah ACFTA +3.

scholarly journals Analisis Kinerja dan Strategi Perdagangan Indonesia-MERCOSURE

2021 ◽  
Vol 8 (2) ◽  
pp. 101-119
Author(s):  
Hastuti Siregar ◽  
Wibowo ◽  
Anda Nugroho ◽  
Dea Amanda
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Area

Indonesia telah menjalin berbagai hubungan kerjasama dengan negara-negara Amerika Latin. Berbagai upaya penjajakan kerjasama terus dilakukan, diantaranya dengan MERCOSUR (terdiri dari Brazil, Argentina, Paraguay, dan Uruguay). Negara-negara anggota MERCOSUR merupakan pasar potensial untuk produk ekspor Indonesia. Tujuan penelitian ini: (1) mengidentifikasi kinerja perdagangan Indonesia-MERCOSUR, (2) menganalisis faktor-faktor yang memengaruhi ekspor Indonesia ke MERCOSUR, dan (3) merumuskan strategi kerjasama perdagangan Indonesia-MERCOSUR. Metode analisis yang digunakan adalah: Analisis deskriptif kualitatif, Gravity Model dan Analisis SWOT. Kinerja perdagangan Indonesia- MERCOSUR, menunjukkan nilai ekspor impor Indonesia dengan MERCOSUR masih kecil dibandingkan dengan negara-negara pesaing. Tarif impor yang diberlakukan oleh negara-negara MERCOSUR terhadap produk-produk utama Indonesia masih relatif tinggi, sebaliknya tarif impor yang diberlakukan oleh Indonesia terhadap produk-produk utama MERCOSUR relatif rendah. Hasil estimasi Gravity Model menunjukkan ekspor Indonesia ke MERCOSUR dipengaruhi secara positif dan hanya signifikan oleh GDP negara-negara MERCOSUR.  Rekomendasi strategi kerjasama perdagangan yang dihasilkan yaitu: (a) mengoptimalkan kemampuan Indonesia memenuhi pasar MERCOSUR terutama pada produk seperti: kelapa sawit, karet, onderdil kendaraan bermotor, serat buatan, alas kaki, kelapa dan tembakau, (b) meningkatkan kerjasama secara intensif kepada negara-negara MERCOSUR dalam bentuk Free Trade Area (FTA), (c) memperbaiki stuktur tarif dan hambatan non tarif antara Indonesia- MERCOSUR. dan (d) meningkatkan diplomasi ekonomi Indonesia-MERCOSUR.

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 GEO-STRATEGIC INTERESTS OF UKRAINE AND ECONOMIC PARTNERSHIP WITH TURKEY

2021 ◽  
Vol 2 (37) ◽  
pp. 210-218
Author(s):  
N. Karasova ◽  
A. Mishchenko
Keyword(s):  
Economic Development ◽  
Gravity Model ◽  
Free Trade ◽  
Bilateral Trade ◽  
Value Added ◽  
Free Trade Area ◽  
Strategic Partnership ◽  
Trade Area ◽  
Economic Partnership ◽  
The Impact

Abstract. Broadening the scope of economic interests, together with the involvement of the strategic partner to resolve security issues, brings the dialogue between Ukraine and Turkey to a new level. This intensified negotiations on the establishment of a free trade area and the implementation of joint projects in the defense industry, cultural and humanitarian spheres. Thus, the study of priority areas of cooperation between Ukraine and Turkey in the Black Sea region for the effective realization of Ukraine’s geostrategic interests is becoming topical. The purpose of the article is to study the peculiarities of the economic partnership between Ukraine and Turkey, to calculate the impact and to determine the advantages and prospects of a deeper bilateral trade liberalization. The methodology is based on assessment of export specialization; the characterization of the relative advantages by the RXA coefficient; the impact assessment of bilateral trade on economic development through a descriptive gravity model. The study found that high tariff barriers are now applied to Ukrainian exporters in the Turkish market. Total exports from Ukraine to Turkey declined by more than 30 per cent from 2011 to 2019, while the low value-added products dominate in the highly concentrated structure of export flows. On the contrary, Turkish exports to Ukraine are quite diversified. The top ten exports include machinery, electrical equipment, vehicles and knitwear. Ukrainian grains, oilseeds and oils, iron and steel, ore and rail transport have comparative advantages in the Turkish market. The military-industrial sector and IT are promising areas for export development and investment cooperation in the Ukrainian economy. Bilateral trade surpluses are in favor of Ukraine. The economic development of Ukraine significantly influences the volume of bilateral trade, according to the results of the descriptive gravity model. A $1 increase in Ukraine’s GDP will lead to an increase in bilateral trade by $0.8. This makes Ukraine much more interested in entering the Turkish market. Keywords: strategic partnership, free trade area, international trade, exports, customs tariffs, liberalization. JEL Classification F13 Formulas: 3; fig.: 4; tabl.: 2; bibl.: 21.

Sign in / Sign up

Export Citation Format

Share Document