Gravity Equation Analysis in the Context of International Trade: Model Specification Implications in the Case of the European Union

2008 ◽  
Vol 46 (5) ◽  
pp. 92-113 ◽  
Author(s):  
Tiiu Paas ◽  
Egle Tafenau ◽  
Nancy J. Scannell
Keyword(s):  
European Union ◽  
International Trade ◽  
Gravity Equation ◽  
Model Specification ◽  
The European Union ◽  
Trade Model ◽  
Equation Analysis

Free Trade Agreement between Tunisia and the European Union, Do Institutions Matter?: An Empirical Validation by A Gravity Model

2015 ◽  
Vol 5 (2) ◽  
pp. 19-36
Author(s):  
Anis Kacem
Keyword(s):  
European Union ◽  
International Trade ◽  
Gravity Model ◽  
Free Trade ◽  
Spatial Econometrics ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
The European Union ◽  
Institutional Dimension ◽  
North And South

Tunisia has signed a free trade agreement with the European Union in 1996, which provides for the reduction of tariff barriers between Tunisia and the EU. In this article, we aim to know and test whether the similarity of the institutional framework has to stimulate international trade between Tunisia and the European Union. In this context, we built a variable called “Institutional distance” to valid the institutional dimension of international trade, near borders effects reported in the literature. To this end, a gravity model was used initially (Tunisia and 21 European countries). Secondly, the estimate shows the existence of spatial autocorrelation. The latter has been corrected using spatial econometrics. The results show that the geographical distance remains more important than the institutions in this type of agreement between north and south shores of the Mediterranean.

scholarly journals European Union: Spearhead of the Environment Protection Movement

2017 ◽  
Vol 6 (3) ◽  
pp. 37-47
Author(s):  
Sorin Burnete ◽  
Abiola E. Ogunmokun
Keyword(s):  
European Union ◽  
International Trade ◽  
World War Ii ◽  
Fair Trade ◽  
Social Issues ◽  
Developed Countries ◽  
Environment Protection ◽  
The European Union ◽  
Trade Relations ◽  
Waste Trade

Abstract Industrialization laid the foundation for contemporary civilization but also begot environmental problems, which have been building up and remained unsolved to this day. There is widespread belief that, if industrial manufacturing lies at the root of environment degradation through endless spewing of residual waste, trade among nations is to blame for scattering residual waste the world over. Yet paradoxically, it is the very international trade that might be the ground for major remedies thereto. The 20th century witnessed the shift from free trade to fair trade; it is about time to shift from fair trade to clean trade. Nevertheless, such serious problems had barely been dealt with until the post-World War II period. An awareness-raising effort in this line was made by the European Union (EU) which, since the early 1970s, has been dealing with environmental and social issues, especially the ones deriving from international trade, in a decisive and responsible manner. Still, EU’s new policy in the field of environment protection has a downside in that it affects trade relations with partners from outside the Union, both developing and developed countries, thereby drawing fierce international reaction. The good part is that EU’s actions will most likely prompt other nations to follow suit.

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