scholarly journals Trade Area Analysis through Gravity Model

2021 ◽  
Keyword(s):  
Gravity Model ◽  
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.

L'impatto degli accordi Euro-mediterranei sull'ortofrutta italiana: alcuni risultati

2009 ◽  
pp. 105-121
Author(s):  
Alessandra Castellini ◽  
Cinzia Pisano
Keyword(s):  
Gravity Model ◽  
Free Trade Area ◽  
Gravity Equation ◽  
Fruit And Vegetables ◽  
Aggregate Level ◽  
Trade Area ◽  
Mediterranean Countries ◽  
Jel Code ◽  
The Impact ◽  
The Eu

- Sector: some Results Since 1995, the Barcelona Process aims to establish a free trade area between Mediterranean countries by 2010. The most commercialized products from Mediterranean countries are fruit and vegetables. The agreement defines, only for some products, preferences at the entrance of the eu market, limited concession for each partner for single products, limited quantities and calendars. This work tries to analyse the impact of the liberalization on the Italian products applying a gravity model in order to asses the Italian import flows from eight Mediterranean countries which signed the Barcelona agreement. The econometric estimation includes fruit and vegetables at the aggregate level and some specified products that enter in competition with typical Italian Mediterranean production such as citrus, melons, potatoes and tomatoes. Since these Mediterranean countries appear as a highly heterogeneous block related to historical, cultural, political and geographical factors, the gravity equation controls these factors by an augmented gravity equation.JEL Code: Q17 - Agriculture in International TradeParole chiave: accordi euro-mediterranei, mercato italiano, ortofrutta, competitivitŕ, gravity model

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 THE EFFECT OF TRADE FACILITATION ON TRADE MARGIN OF 8 ASEAN-CHINA FREE TRADE AREA COUNTRIES (ACFTA): A GRAVITY MODEL APPROACH

2017 ◽  
Vol 1 (2) ◽  
pp. 53
Author(s):  
Ferdyan Susetyo
Keyword(s):  
Gravity Model ◽  
Random Effect ◽  
Random Effect Model ◽  
Free Trade Area ◽  
Export Growth ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Trade Facilitation ◽  
Trade Area ◽  
Port Efficiency

Trade facilitation is an effort of simplification and harmonization of international trade procedures. Trade facilitation that manifested in the form of policy packages that aim to reduce trade costs and improve export growth. Export growth can be sourced from the level of diversity of exported goods (extensive margin) and the volume of exported goods (intensive margin). This study aims to analyze the effect of trade facilitation on the extensive and intensive margin of trade eight member countries of ACFTA during the years 2006-2014. Trade facilitation indicators used in this study consisted of exporters and importers port efficiency. This study uses gravity model and estimation techniques Random Effect Model. The results showed that exporter port efficiency have a positive and significant effect on the extensive margin while importer port efficiency has a positive and significant effect on the intensive margin.

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 Effect of Economic Openness, Democracy, and Institutional Quality on Indonesia Exports to ASEAN Plus Three

2021 ◽  
pp. 115
Author(s):  
Wikanatioso Wikantioso
Keyword(s):  
Gravity Model ◽  
Institutional Quality ◽  
Free Trade Area ◽  
Economic Openness ◽  
Positive Effects ◽  
Trade Area ◽  
Asean Countries ◽  
Democratic Principles ◽  
Export Destination ◽  
Trade Gravity Model

The ASEAN Charter Agreement and the cooperation of the East Asia Free Trade Area ASEAN+3 provide momentum for ASEAN countries to increase economic openness, strengthen the application of democratic principles, and improve institutional quality to enhance trade cooperation. This study aims to explore the role of economic openness, democracy, and institutional quality in increasing Indonesia's exports to ASEAN countries plus three during the 1996-2017 period using the augmented gravity model. The results showed that the openness of ASEAN+3 to trade (trade% of GDP), democracy, and institutional quality of Indonesia and ASEAN+3 as Indonesia's export destination had positive effects in increasing  Indonesia's exports to ASEAN+3. However foreign direct investment in Indonesia and ASEAN+3 does not affect the export. Keyword: trade gravity model, economic openness, democracy, governance institution, Indonesia's export, ASEAN+3

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.

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