scholarly journals International Trade Efficiency, the Gravity Equation, and the Stochastic Frontier

2006 ◽  
Author(s):  
Heejoon Kang ◽  
Michele U. Fratianni
Keyword(s):  
International Trade ◽  
Stochastic Frontier ◽  
Gravity Equation

The Gravity Equation in International Trade in Services

2006 ◽  
Vol 142 (1) ◽  
pp. 92-121 ◽  
Author(s):  
Fukunari Kimura ◽  
Hyun-Hoon Lee
Keyword(s):  
International Trade ◽  
Gravity Equation ◽  
Trade In Services

scholarly journals Gravity and Heterogeneous Trade Cost Elasticities

2021 ◽  
Author(s):  
Natalie Chen ◽  
Dennis Novy
Keyword(s):  
International Trade ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
Gravity Equation ◽  
Trade Costs ◽  
Currency Unions ◽  
Trade Cost ◽  
New Approach ◽  
Substantial Heterogeneity

Abstract How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to popular trade cost variables such as currency unions, trade agreements, and WTO membership. While we estimate that these variables are associated with increased bilateral trade on average, we find substantial heterogeneity. Consistent with the predictions of our framework, trade cost effects are strong for ‘thin’ bilateral relationships characterised by small import shares, and weak or even zero for ‘thick’ relationships.

scholarly journals PERDAGANGAN INTERNASIONAL, INVESTASI ASING, DAN EFISIENSI PEREKONOMIAN NEGARA-NEGARA ASEAN

2008 ◽  
Vol 10 (3) ◽  
Author(s):  
Rifai Afin ◽  
Herry Yulistiono ◽  
Nur Alfillail Oktarani
Keyword(s):  
International Trade ◽  
Foreign Investment ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Market Development ◽  
Foreign Portfolio Investment ◽  
Frontier Analysis ◽  
Asean Member ◽  
Financial Market Development ◽  
The Impact

This research analyzes the impact of the international trade and the foreign investment on the efficiency of the host country. We apply two consecutive steps on the 5 ASEAN member countries data during the period of 1995 - 2005.The first step is the estimation of the frontier model, using the Stochastic Frontier Analysis (SFA). The second step is the estimation of inefficiency determinacy model, covering the impact of the Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Other Foreign Investment (OFI), Human Development Index (HDI) and the Financial Market Development (FMD). Our result shows the international trade, FMD and the 3 forms of the foreign investment are significantly affect the economic efficiency.Keywords:Efficiency, Foreign investment, Stochastic Frointier Analysis, international trade, ASEAN.JEL Classification: F14, F15

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