scholarly journals Identifying the determinants of South Africa’s extensive and intensive trade margins: A gravity model approach

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Marianne Matthee ◽  
Maria Santana-Gallego
Keyword(s):  
Gravity Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Export Growth ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Product Mix ◽  
Factors Affecting ◽  
Wide Range ◽  
Export Product

Background: The significance of the paper is twofold. Firstly, it adds to the small but growing body of literature focusing on the decomposition of South Africa’s export growth. Secondly, it identifies the determinants of the intensive and extensive margins of South Africa’s exports – a topic that (as far as the authors are concerned) has not been explored before.Aim: This paper aims to investigate a wide range of market access determinants that affect South Africa’s export growth along the intensive and extensive margins.Setting: Export diversification has been identified as one of the critical pillars of South Africa’s much-hoped-for economic revival. Although recent years have seen the country’s export product mix evolving, there is still insufficient diversification into new markets with high value-added products. This is putting a damper on export performance as a whole and, in turn, hindering South Africa’s economic growth.Methods: A Heckman selection gravity model is applied using highly disaggregated data. The first stage of the process revealed the factors affecting the probability of South Africa exporting to a particular destination (extensive margin). The second stage, which modelled trade flows, revealed the variables that affect export volumes (intensive margin).Results: The results showed that South Africa’s export product mix is relatively varied, but the number of export markets is limited. In terms of the extensive margin (or the probability of exporting), economic variables such as the importing country’s GDP and population have a positive impact on firms’ decision to export. Other factors affecting the extensive margin are distance to the market (negative impact), cultural or language fit (positive impact), presence of a South African embassy abroad (positive impact), existing free trade agreement with Southern African Development Community (positive impact) and trade regulations and costs (negative impact). In terms of the intensive margin (or the factors influencing the volume of exports), there are strong parallels with the extensive margin, with the exception being that the time involved in exporting has more of an impact than documentary requirements.Conclusion: Among the factors contributing to South Africa’s exports having largely developed in the intensive margin are a general lack of market-related information, infrastructural weaknesses (both of a physical and technological nature) and a difficult regulatory environment – all of which add to the cost and time involved in exporting. Policymakers have long spoken about the need for the country to diversify its export basket, but now talk about needs to give way to action. The government and its economic partners need to arrive at a common vision of an export sector that will be able to expand into new products and markets, be an active participant in global value chains and deliver sustainable jobs.

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 A Strategies Alignment Approach to Manage Disruptive Events in Collaborative Networks

2020 ◽  
Vol 12 (7) ◽  
pp. 2641 ◽  
Author(s):  
Beatriz Andres ◽  
Giulio Marcucci
Keyword(s):  
Network Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Performance Loss ◽  
Turbulent Environments ◽  
Conflict Situations ◽  
Proposed Model ◽  
Wide Range ◽  
Negative Impacts ◽  
Disruption Recovery

Enterprises of the supply chain are currently embedded in dynamic and turbulent environments, having to deal with the appearance of disruptive events. When an enterprise is affected by a disruptive event, the consequences of the disruption not only impact in the enterprise itself, but also influences on the other partners of the network to which it belongs. Thus, disruptive events exceed the capability of individual actors, impacting on the network performance. Consequently, network partners have to collaboratively make decisions to soften the negative impacts on the performance. In this regard, after a disruption takes place, network enterprises should be aware of activating a set of sustainable and resilience strategies that attenuate the performance loss and reduce the disruption recovery time. Nevertheless, the diverse nature of disruptions means that a wide range of varied and sometimes contradictory strategies can be formulated, resulting in conflict situations among the collaborative network (CN) partners. The current paper proposes an approach that makes it possible to collaboratively manage the strategies to activate when a disruptive event occurs, so that the selected strategies are aligned. The strategies alignment approach, proposed in the paper, makes it possible to select those strategies that have a positive impact, or a minimum negative impact, on the objectives defined, not only in the enterprise itself, but also in the objectives defined by the rest of CN partners. The alignment of strategies makes it possible to reduce the performance level loss when a disruption takes place. Thus, the strategies alignment approach aims at activating those strategies that maximize the performance of the CN, achieving levels of performance equal or higher than the levels previous to the disruption, limiting the adverse effects produced by the disruptive events, and contributing to a more sustainable–resilient CN. Finally, in order to validate the proposal, a case study is presented. The proposed model is validated to deal with a drop in demand due to a political embargo, in a textile CN.

scholarly journals Factors Affecting Fertility – New Evidence from Malaysia

2017 ◽  
Vol 36 (36) ◽  
pp. 7-20
Author(s):  
Atif Awad ◽  
Ishak Yussof
Keyword(s):  
Mortality Rate ◽  
Infant Mortality ◽  
Negative Impact ◽  
Positive Impact ◽  
Infant Mortality Rate ◽  
Fertility Rates ◽  
Short Term ◽  
Factors Affecting ◽  
Distributed Lag ◽  
Education And Employment

Abstract This research paper investigates long and short term determinants of fertility rates in Malaysia based on basic macroeconomic variables for the period 1980-2014 using Auto Regressive Distributed Lag (ARDL) method. The study reveals that over a long term period, all the selected variables (GDP, infant mortality rate, females’ education and employment) have had significant and negative impact on total fertility rates. Whilst during the short term period, only the infant mortality rate has had a positive impact. Since population growth is partly determined by fertility rates, efforts to increase population in Malaysia should consider factors that affect those rates.

scholarly journals Does Foreign Direct Investment More Important Than Domestic Direct Investment for Export Structure? Evidence from Indonesia

2021 ◽  
Author(s):  
Ariyo DP Irhamna ◽  
Ely Nurhayati ◽  
Adinda Putri Safira ◽  
Galuh Indra Wijaya
Keyword(s):  
Time Series ◽  
Foreign Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Export Structure ◽  
The Impact ◽  
Export Product

Abstract Scholars have long studied the spillover of FDI on trade. However, there has been limited study which spesifically investigate the impact of FDI on the export structure in a developing country. Does FDI more important than domestic investment for export structure? To examine the question, we test the impact of FDI and DDI on the export structure in time series framework, utilizing data on FDI inflows to Indonesia and export data based on product stage over 1992–2017. The export structure is analyzed based on three categories, namely primary product, intermediate product, and final product. Our results show that domestic investment has a negative impact on the primary export product, while foreign investment has a positive impact on the final export product. The result highlights the importance of domestic and foreign investment in export upgrading.

scholarly journals Competitiveness Analysis and Factors Affecting Trade of Main Commodities between Indonesia and Turkey

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Fauziyah Adzimatinur
Keyword(s):  
Wheat Flour ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Woven Fabrics ◽  
Least Square ◽  
Series Data ◽  
Trade Integration ◽  
Tariff Barrier ◽  
Factors Affecting

This study aims to analyze the competitiveness, trade integration, trade complementarity, and factors affecting the export and import of main commodities between Indonesia and Turkey. Data used in this study is time series data in 1996-2018 and the methods used are Revealed Comparative Advantage (RCA), Intra-Industry Trade (IIT), Trade Complementarity Index (TCI), and Ordinary Least Square (OLS). Results of RCA showed Indonesia's main export commodities to Turkey are woven fabrics, stearic acid, palm oil and natural rubber. While IIT showed that there is only one way trade from Indonesia. Import commodities from Turkey are carpets, borax, wheat flour, and tobacco. TCI showed low complementarity between Indonesia�s export and Turkey�s import. GDP per capita has positive impact on exports and imports. The exchange rate has positive impact on exports and negative on imports. Price and tariff rate have negative impact on both exports and imports. Dummy Non-tariff barrier has negative impact on exports while in import side, it only affects the wheat flour negatively. The Government of Indonesia should pursue a strategy in trade cooperation as efforts to reduce trade barriers such as tariffs and non-tariffs for some commodities that have competitiveness in the Turkish market.

scholarly journals Analisis Pengembangan Ekspor Cengkeh Indonesia

2018 ◽  
Vol 7 (1) ◽  
pp. 21-42
Author(s):  
Ely Nurhayati ◽  
Sri Hartoyo ◽  
Sri Mulatsih
Keyword(s):  
Gravity Model ◽  
Positive Impact ◽  
Export Performance ◽  
Export Price ◽  
Jel Classification ◽  
Gdp Per Capita ◽  
Factors Affecting ◽  
Economic Distance ◽  
Capita Export ◽  
Per Capita

Exports are an important component of the economy. The higher export performance, the greater positive impact on the economy. From 2012 to 2016, Indonesia's exports continue to decline, so Indonesia needs to boost its exports again. One of the potential commodities developed is cloves. This study analyzes the development of Indonesian clove exports by finding out the competitiveness of cloves, as well as factors affecting its exports. The methods used are RCA, EPD, X-Model, and Gravity. The results of the analysis found that an optimistic market developed is Pakistan, Germany, Italy and United State of America. Potential markets to be developed are Malaysia, Vietnam, Thailand, France and Netherlands markets. Factors affecting Indonesian clove exports are GDP per capita, export price, economic distance and tariff. Keywords: Clove, EPD, Export, Gravity Model, RCA JEL Classification: C23, F10, F13

scholarly journals Intention To Buy Air Ticket Online Of Vietnamese Consumers

2021 ◽  
Author(s):  
Ha Nam Khanh Giao ◽  
Huynh Quoc Tuan
Keyword(s):  
Perceived Risk ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Regression Analysis ◽  
Ease Of Use ◽  
Impact Factors ◽  
Perceived Ease Of Use ◽  
Buying Behavior ◽  
Factors Affecting ◽  
Perceived Benefit

The study aimed to identify and measure the factors affecting the intention to buy air ticket online in Vietnam by surveying 331 consumers aged 18 and over who bought air ticket online. The SPSS 20 tool was used to analyze the reliability of the scale through the Cronbach's Alpha coefficient, EFA exploratory factor analysis, and linear regression analysis. Research results show that positive impact factors, decreasing by their strength, include: Perceived Benefit, Reliability, Reputation, Subjective Norm, Perceived Ease of Use. Meanwhile, Perceived Risk has a negative impact on the intention to buy air ticket of consumers. The results also help managers recognize the importance of the factors that affect the buying behavior of the consumers, and consequently make appropriate strategic adjustments and actions in the competitive process for air ticket online presently.

scholarly journals Factors affecting asset investment of public companies in plastic and packaging industry in Vietnam

2022 ◽  
Vol 9 (1) ◽  
pp. 148-153
Author(s):  
Vu et al. ◽  
Keyword(s):  
Regression Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Internal Factors ◽  
Public Companies ◽  
Factors Affecting ◽  
Financial Decisions ◽  
Panel Data Regression ◽  
Packaging Industry ◽  
Relationship Of

The purpose of this research is to identify and analyze the influence of internal factors on asset investment of public companies in the plastic and packaging industry in Vietnam. The research has built a regression model to determine the relationship of internal factors affecting asset investment of public companies in the plastic and packaging industry in Vietnam. The strength of this research is to use the E-view software in quantitative analysis to build a panel data regression model. At the same time, the researchers used the Hausman test to select the appropriate model compared to other research. The data of the research are collected and calculated from the financial statements of 27 companies in the plastic and packaging industry in Vietnam from 2013 to 2020. The research results show that such factors as sale, equity, and debt ratio have a positive impact on asset investment, the return on assets has a negative impact on asset investment, while the average loan interest rate does not affect the asset investment of enterprises. Therefore, the author has made recommendations to help public companies in the plastic and packaging industry in Vietnam to improve the efficiency of asset investment. The results of this research are very useful for corporate financial managers in helping them make appropriate financial decisions for their companies.

scholarly journals Nigeria’s cocoa exports: a gravity model approach

2021 ◽  
Vol 51 (11) ◽  
Author(s):  
Nazir Muhammad Abdullahi ◽  
Saleh Shahriar ◽  
Sokvibol Kea ◽  
Aminu Muhammad Abdullahi ◽  
Qianggiang Zhang ◽  
...  
Keyword(s):  
Gravity Model ◽  
Negative Impact ◽  
Sample Selection ◽  
Exchange Rate Policy ◽  
Least Square ◽  
Factors Affecting ◽  
The Usa ◽  
Export Flows ◽  
Major Factors ◽  
Analytical Approaches

ABSTRACT: What are the major factors affecting Nigeria’s cocoa export flows? In answering this question, the authors suggest a commodity-specific gravity model with three different analytical approaches, (the Heckman Sample Selection Model, the Generalised Least Square, and the Poisson Pseudo Maximum Likelihood), based on a period of 24 years of panel data for Nigeria and it’s 36 importing partners to estimate the models. The results showed that GDP, exchange rate policy, WTO, EU, and colonial link are positively associated with the Nigerian cocoa export flows. Further, the negative impact of the GDP per capita, landlocked, distance, AU, and ECOWAS are observed. The need for the expansion of exports to the trading partners, especially the EU members (Netherlands, Germany, France, United Kingdom, Belgium, Spain, etc.), Canada, Malaysia, and the USA is particularly highlighted. These results are important for the formulation of future trade policy that could boost up the Nigerian cocoa exports. This would eventually contribute to the diversification of the Nigerian exports and also enhance the country’s foreign earnings.

scholarly journals Research on the Factors Affecting Customer Engagement in Social Commerce from the Perspective of Two-Factor Theory

2021 ◽  
Vol 1 (3) ◽  
pp. 8-13
Author(s):  
Saisai Qiao ◽  
Jie Wei
Keyword(s):  
Social Support ◽  
Purchase Intention ◽  
Negative Impact ◽  
Positive Impact ◽  
Customer Engagement ◽  
Social Commerce ◽  
Factors Affecting ◽  
Significant Negative Impact ◽  
Social Media Platforms ◽  
New Type

As a new type of business model, social commerce has attracted more attention. we propose a model to explore the factors influencing customer engagement by using the two-factor theory, as well as the effect of customer engagement on subsequent participation behavior. The results show that both social support and self-congruence have a positive impact on customer engagement, while perceived engagement risk and perceived commerce risk have a significant negative impact on customer engagement, moreover, customer engagement is positively related to social sharing and purchase intention. In addition, this paper verifies the comparative effect of social commerce platforms. The results show that there are significant differences in social support and self-congruence between e-commerce and social media platforms.

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