scholarly journals Analysis of Fijis Regional Trade Using Gravity Model

2022 ◽  
Vol 10 (01) ◽  
pp. 17-38
Author(s):  
Nakisha Natasha Bi ◽  
Ximei Kong
Keyword(s):  
2009 ◽  
Vol 10 (2) ◽  
pp. 136-156
Author(s):  
E.M. Ekanayake ◽  
Amit Mukherjee ◽  
Bala Veeramacheneni

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.


Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1882
Author(s):  
Marta Bengoa ◽  
Blanca Sanchez-Robles ◽  
Yochanan Shachmurove

Latin America has experienced a surge in foreign direct investment (FDI) in the last two decades, in parallel with the ratification of major regional trade agreements (RTAs) and bilateral investment treaties (BITs). This paper uses the latest developments in the structural gravity model theory to study if the co-existence of BITs and two major regional agreements, Mercosur and the Latin American Integration Association (ALADI), exerts enhancing or overlapping effects on FDI for eleven countries in Latin America over the period 1995–2018. The study is novel as it accounts for variations in the degree of investment protection across BITs within Latin America by computing a quality index of BITs. It also explores the nature of interactions (enhancing/overlapping effects) between RTAs and BITs. The findings reveal that belonging to a well-established regional trade agreement, such as Mercosur, is significantly more effective than BITs in fostering intra-regional FDI. Phasing-in effects are large and significant and there is evidence of enhancing effects. Results within the bloc are heterogeneous: BITs exert a positive, but small effect, for middle income countries. However, BITs are not effective in attracting FDI in the case of middle to low income countries, unless these countries ratify BITs with a high degree of investment protection.


Author(s):  
Kwami Ossadzifo Wonyra ◽  
Honoré Tenakoua ◽  
Messan Kinvi

This paper aims to analyze the constraints to the export supply in ECOWAS countries. The descriptive statistics as well as the gravity model techniques emphasize the weakness of the intra-regional trade in ECOWAS. Firstly, the countries of the zone with a relatively advanced economy, such as Nigeria, strongly participate in intra-regional exports while landlocked countries and small countries are major players in intra-regional imports. This is explained by the lack of diversification and non-complementarity of the product structure of the international trade. Secondly, we notice that the number of exchangeable products influence positively and significantly the participation in international trade as well as the GDP.


2006 ◽  
Vol 45 (3) ◽  
pp. 425-437 ◽  
Author(s):  
Jahangir Khan Achakzai

A standard gravity model was applied to estimate the magnitude of potential trade flows between Pakistan and the nine ECO member countries. The major issue in this analysis is to explore that Intra- ECO trade has great potential for Pakistan and that it got lower share than its potential. The results from the gravity model confirm that ECO has a positive and significant impact on intra-regional trade. It suggests that intra-regional trade is lower than what would be predicted by the gravity equation, suggesting greater scope for regional integration among the ECO member countries. This is especially the case between countries that have a common geographical border. The privilege of geography and the existence of trade preferences among ECO members could be expanded to cover potential trade to neighboring countries.


Author(s):  
Paulo Costacurta de Sá Porto

Este artigo analisa os impactos dos diferentes modais de transporte nos fluxos de comércio internacional dos estados brasileiros. Para isso, usamos a equação gravitacional estimando três modelos diferentes: dados agrupados; efeitos fixos; e efeitos aleatórios. Além disso, incluímos variáveis para os principais modais de transporte utilizados no país, isto é, modal rodoviário, ferroviário, aquático e aéreo. Finalmente, uma vez que há evidências de que existe correlação espacial nos dados, incluímos um modelo de econometria espacial, o modelo spatial lag of X (SLX). Usamos um painel que incluiu dados de comércio de 2012, 2013, 2014 e 2015 para todos os 27 estados do Brasil para os principais parceiros comerciais do país. Nossos resultados mostram que o comércio dos estados brasileiros é impactado de forma significativa pela infra-estrutura de transporte dos estados, especialmente o transporte rodoviário, mas também o transporte ferroviário e aquático. Além disso, descobrimos que a infra-estrutura ferroviária e portuária em estados vizinhos é importante para explicar as exportações de um estado. Isso explica, por exemplo, o fato de que uma proporção substancial das exportações de soja dos estados do Centro Oeste como Mato Grosso, Mato Grosso do Sul e Goiás é exportada através do uso da infra-estrutura ferroviária e portuária do estado vizinho São Paulo.


2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Sane Malick

In West Africa, two common external tariffs coexist at the sub-regional and regional level with eight countries out of fifteen sharing their membership of the two entities. This paper analyzes intra-West African Economic and Monetary Union trade flows with the implementation of the Economic Community of West African States common external tariffs. The study makes use of a methodology which is based on an augmented gravity model. Overall, the findings from the three estimated models converge in the same direction, with several significant coefficients simultaneously and of the same sign. The findings provide overall satisfaction in the estimation of the gravity model. The lack of diversification of the economies of the two zones is one of the explanatory factors for the relative weakness of intra-regional trade. The issue of the structural transformation of the economies of the member countries therefore arises, more than ever acutely, which would contribute to the intensification of trade to make intra-regional trade one of the levers of economic growth and development in the two customs unions.


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