scholarly journals Investigating the effect of geographical distances and cultural proximity on the Hungarian wine trade

2015 ◽  
Vol 37 (4) ◽  
pp. 513-529
Author(s):  
Jeremiás Máté Balogh
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Point Of View ◽  
Geographical Proximity ◽  
Cultural Proximity ◽  
Bilateral Trade Flows ◽  
Geographical Distances ◽  
Wine Trade

Wine is a very special product from an economic, cultural, and sociological point of view. Wine culture and wine trade play an important role in Hungary. The effect of cultural and geographical proximity on international trade has already been proven in the international trade literature. The size of bilateral trade flows between any two countries can be approximated by the gravity theory of trade. The gravity model provides empirical evidence of the relationship between the size of the economies, the distances between them, and their trade. This paper seeks to analyse the effect of cultural and geographical proximity on Hungary’s bilateral wine trade between 2000 and 2012, employing the gravity equation. The analysis is based on data from the World Bank WITS, WDI, as well as CEPII, and WTO databases. I apply OLS, Random Effects, Poisson, Pseudo-Poisson-Maximum-Likelihood and Heckman two stage estimators to calculate the gravity regression. The results show that in the case of Hungary, cultural similarity and trade liberalisation have a positive impact, while geographical distance, landlockedness, and contiguity have a negative impact on Hungarian wine exports.

scholarly journals The Determinant of Bilateral Trade in the East African Community: Application of the Gravity Model

2019 ◽  
Vol 11 (4) ◽  
pp. 1
Author(s):  
Ambetsa Wycliffe Oparanya ◽  
Kenneth P. Mdadila ◽  
Longinus K. Rutasitara
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Flows ◽  
East African ◽  
African Region ◽  
East African Community ◽  
Corruption Index ◽  
Bilateral Trade Flows

This study examines the determinants of bilateral trade flows within the East African region using the Gravity model approach. Using a 40 year data obtained from the World Development Institute’s data base, the Random Effects model is applied to empirically determine the variables that drive bilateral trade within the region. The findings suggest that country size, contiguity, diaspora remittances and corruption index have a positive impact on the regions bilateral trade. On the other hand, foreign direct investment flows, net population effects and mobile subscription ratio have a negative impact on intra-trade flows among member states. Although not exhaustive, the study offers useful insights for policy makers to seek measures to spur the EAC intra-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 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.

scholarly journals Effects of COVID-19 on trade flows: Measuring their impact through government policy responses

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258356
Author(s):  
Javier Barbero ◽  
Juan José de Lucio ◽  
Ernesto Rodríguez-Crespo
Keyword(s):  
Bilateral Trade ◽  
State Of The Art ◽  
Negative Impact ◽  
Trade Agreements ◽  
Trade Flows ◽  
Policy Responses ◽  
Negative Effect ◽  
Bilateral Trade Flows ◽  
Gravity Model Of Trade ◽  
The Impact

This paper examines the impact of COVID-19 on bilateral trade flows using a state-of-the-art gravity model of trade. Using the monthly trade data of 68 countries exporting across 222 destinations between January 2019 and October 2020, our results are threefold. First, we find a greater negative impact of COVID-19 on bilateral trade for those countries that were members of regional trade agreements before the pandemic. Second, we find that the impact of COVID-19 is negative and significant when we consider indicators related to governmental actions. Finally, this negative effect is more intense when exporter and importer country share identical income levels. In the latter case, the highest negative impact is found for exports between high-income countries.

scholarly journals A Panel Analysis of Trade Gravity between Pakistan and South Asian Countries

2020 ◽  
Vol 23 (4) ◽  
pp. 187-207
Author(s):  
Waheed Ullah Jan ◽  
Mahmood Shah
Keyword(s):  
Gravity Model ◽  
South Asian ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Least Square ◽  
Asian Countries ◽  
Trade Patterns ◽  
Data Set ◽  
Trade Relations

This paper attempts to examine Pakistan’s trade patterns with South Asian countries by using a gravity model of trade. The main objective of the study is to quantify the long‑run impacts of gravity variables. To achieve this objective, a panel data set for the period 2003 to 2017 has been used. Based on the mixed evidence of the results of panel unit root tests, Pooled Mean Group (PMG) and Panel Dynamic Ordinary Least Square (DOLS) techniques are applied. The outcome of the PMG and Panel DOLS models justifies the theoretical background of the gravity model and suggests that all the basic gravity variables haveusual signs. The RGDPs and population of both Pakistan and the partner country have a positive impact on their bilateral trade. On the other hand, the distance between the two trading countries and the exchange rate have a negative impact on bilateral trade.The uniqueness of this study is that it measures the impacts of qualitative variables along with basic gravity variables. Language similarities and common borders have a positive impact on bilateral trade. Pakistan has borders with India and Afghanistan, but their trade relations are not worth mentioning. The military conflicts between Pakistan and India, and the political suspicions between Pakistan and Afghanistan hinder their trade relations.

Alliances, Preferential Trading Arrangements, and International Trade

1997 ◽  
Vol 91 (1) ◽  
pp. 94-107 ◽  
Author(s):  
Edward D. Mansfield ◽  
Rachel Bronson
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Major Power ◽  
Political Incentives ◽  
Bilateral Trade Flows ◽  
Quantitative Analyses ◽  
Preferential Trading ◽  
Preferential Trading Arrangements ◽  
Type Of Institution

We analyze the effects of alliances and preferential trading arrangements on bilateral trade flows. Both factors are likely to promote trade among members, but we argue that the interaction between them is central to explaining patterns of commerce. The combination of an alliance, which creates political incentives for participants to engage in trade, and a commercial institution, which liberalizes trade among members, is expected to provide a considerable impetus to commerce among parties to both. The results of our quantitative analyses support these arguments. Both alliances and preferential trading arrangements strongly affected trade from 1960 to 1990, and allies that included a major power conducted considerably more trade than their nonmajor-power counterparts. Moreover, the interaction between alliances and preferential trading arrangements is fundamental to explaining patterns of bilateral commerce: Parties to a common preferential trading arrangement and a common alliance engage in markedly greater trade than do members of either type of institution but not both.

scholarly journals Labor clauses in trade agreements: Hidden protectionism?

2021 ◽  
Author(s):  
Céline Carrère ◽  
Marcelo Olarreaga ◽  
Damian Raess
Keyword(s):  
Developing Countries ◽  
Bilateral Trade ◽  
Positive Impact ◽  
A Priori ◽  
Trade Agreements ◽  
Trade Flows ◽  
Middle Income ◽  
Positive Effects ◽  
Bilateral Trade Flows ◽  
The Impact

AbstractWe explore the impact of the introduction and design of labor clauses (LCs) in preferential trade agreements (PTAs) on bilateral trade flows over the period 1990–2014. While it is not a priori clear if the inclusion of LCs in PTAs will decrease or increase bilateral trade, we expect the direction of trade to matter, that is, we expect to observe the (negative or positive) impact of LCs in the South-North trade configuration. We also expect, in that configuration, stronger LCs to yield stronger (negative or positive) effects on bilateral trade flows. Using a novel dataset on the content of labor provisions in PTAs, we find in line with our first expectation that while the introduction of LCs has on average no impact on bilateral trade flows, it increases exports of low and middle-income countries with weaker labor standards in North–South trade agreements. Consistent with our second expectation, this positive impact is mostly driven by LCs with institutionalized cooperation provisions. In contrast, LCs with strong enforcement mechanisms do not have a statistically significant impact on exports of developing countries in North–South PTAs. The results are inconsistent with the ideas that LCs are set for protectionist reasons or have protectionist effects, casting doubt on the logic for the reluctance of many developing countries to include LCs in their trade agreements.

scholarly journals CARTELS AND THEIR ROLE IN THE ORGANIZATION OF PRODUCTION AND INTERNATIONAL TRADE

2020 ◽  
pp. 71-77
Author(s):  
Елена Вячеславовна Зенкина ◽  
Валерий Максимович Тумин ◽  
Пётр Александрович Костромин
Keyword(s):  
International Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Modern World ◽  
Goods And Services ◽  
History Of ◽  
International Cartel ◽  
Organization Of Production ◽  
Market Relations ◽  
Domestic Companies

In the modern world economy, an extremely important role is played by large international holding-type companies, often referred to as transnational corporations, financial, financial-industrial and other groups. The enterprises of such companies are located and operate in most countries of the world and have a significant impact on the main parameters of the functioning of a wide variety of markets for goods and services. With their economic potential, which often exceeds the corresponding potential of individual states, these companies are able to influence the development of market relations in both positive and negative directions. The so-called international cartel agreements, which generally mean mutual agreements between companies that often contradict the current legislation of countries, in order to establish a monopoly on certain goods (services) produced, control and capture markets, have a particularly acute negative impact on markets. In this regard, the article presents a brief history of the activities of international cartels and law enforcement practice to restrict their activities. The forms and key provisions of cartel collusion of enterprises of various industry orientations and spheres of activity are characterized. Some compensation schemes and forms of punishment for suppressing fraudulent actions of cartel participants are outlined. At the same time, there are shown situations when cartel agreements have a positive impact on the development of production, international trade and market relations. Despite strict antitrust laws, international cartels are created and operate in the markets, which should be taken into account by domestic companies when planning the results of work for them 

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 Media in the Education of Children

2015 ◽  
Vol 5 (1) ◽  
pp. 218
Author(s):  
Rovena Elmazi ◽  
Ledina Koci
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Point Of View ◽  
The Other ◽  
Economic Interests ◽  
New Approach ◽  
Sports News ◽  
The One ◽  
Living Being

Nowadays media has developed broadly and it consists of several television networks, press, radio, etc. On the one side, such media development has positive impact, but on the other side, it has negative impact which affects education and formation of new generations. As a basketballer and trainer of young ages I will focus in the role of media in the education of children from the sports point of view. Technological and economic development after the ‘90s brought with it a new approach: - unequal broadcasting of television programmes for all the sports disciplines, because in our country, for economic interests, only football is covered and such abuse goes to the point of using the term “sports news” and the only news is about football, or even Albanian sports newspaper in which the only information is about football. Wouldn’t it be better to say “Albanian football” instead?! The contrary one finds in the “Albanian sports” which pages cover all sports. Moreover, such phenomenon has negative impact on the education of generations that increasing are dreaming about football, spend money about football, avoid other alternatives thinking that football is the only way to have a luxury living, being rich and famous.

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