scholarly journals An Analysis of India’s Trade Flow with BIMSTEC nations- A Gravity Model Approach

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
SUNIL RAI ◽  
Anand Shankar Paswan ◽  
Dr. S.N. Jha
Keyword(s):  
Gravity Model ◽  
Positive Impact ◽  
Trade Flow ◽  
Total Trade ◽  
Contemporaneous Correlation ◽  
Trading Bloc ◽  
Trading Pattern ◽  
The Impact ◽  
Global Population ◽  
Model Approach

At present, the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) represent 22 percent of the global population and carries immense economic promise, with a combined GDP worth $ 3.5 trillion (2018). BIMSTEC have India as the largest economy of the group followed by Bangladesh, Thailand, Sri Lanka, Nepal, Myanmar and Bhutan. The paper tries to examine the impact of determinants of trade, on trading pattern of India with the BIMSTEC nations, by employing an augmented gravity model on panel data, since its formation for the period of 22 years i.e., from 1997-2018. The paper tries to examine the India’s trade flow within BIMSTEC trading bloc by implying augmented gravity model followed by Egger (2000,2002), Baltagi et al. (2003) and Serlenga and Shin (2007). Several checks have been performed to imply the presence of serial correlation, heteroscedasticity and contemporaneous correlation in the panels. Many other preliminary tests have also been performed to know the crosssectional dependency, stationarity, panel co-integration and normality of variables. The simple panel OLS estimation technique has been used conduct Regression. The study finds out that Heckscher-Ohlin- Samuelson theorem explain the India’s pattern of trade with the bloc. The variables GDP, per capita GDP, Trade GDP ratio, common border and belonging to BIMSTEC has positive impact on the trade between the India and country j. While tax and distance are negatively correlated with total trade of the nations as per our expectations.

scholarly journals ANALISIS PENGARUH NON-TARIFF MEASURES EKSPOR KOMODITI CRUDE PALM OIL (CPO) INDONESIA KE NEGARA TUJUAN EKSPOR UTAMA

2018 ◽  
Vol 3 (2) ◽  
pp. 111-135 ◽  
Author(s):  
Ayu Renita Sari ◽  
Dedi Budiman Hakim ◽  
Lukytawati Anggraeni
Keyword(s):  
Gravity Model ◽  
Palm Oil ◽  
Fixed Effects ◽  
Positive Impact ◽  
Trade Flow ◽  
Trade Barriers ◽  
Fixed Effects Model ◽  
Crude Palm Oil ◽  
Phytosanitary Measures ◽  
The Impact

The study of this paper is aimed to evaluate the effects of non-tariff measures (NTM) upon Indonesian crude palm oil (CPO) export in the main destinations. Identified the competitiveness analysis using the Revealed Comparative Advantage index and the impact of the measures has estimated using a panel data gravity model constructed with disaggregated data about bilateral export trade flow of crude palm oil between Indonesia and its main trade partners for the period from 2003 to 2013. NTM represented binary variable that specified with a dummy variable. The gravity model has estimated with a fixed effects model and the results indicated that the existence of trade barriers to trade (TBT) appears to impede the Indonesian exports of CPO. But the existence of sanitary and phytosanitary measures (SPS) which related to food safety and the existence of trade remedy (antidumping, subsidy, safeguard) presented a positive impact upon the Indonesian exports of CPO. Keywords: Export, Non-Tariff Measures (NTM), Sanitary and Phytosanitary (SPS), Trade Barriers to Trade (TBT), Trade Remedy, Crude Palm Oil

scholarly journals ANALISIS PENGARUH NON-TARIFF MEASURES EKSPOR KOMODITI CRUDE PALM OIL (CPO) INDONESIA KE NEGARA TUJUAN EKSPOR UTAMA

2018 ◽  
Vol 3 (2) ◽  
pp. 111-135
Author(s):  
Ayu Renita Sari ◽  
Dedi Budiman Hakim ◽  
Lukytawati Anggraeni
Keyword(s):  
Gravity Model ◽  
Palm Oil ◽  
Fixed Effects ◽  
Positive Impact ◽  
Trade Flow ◽  
Trade Barriers ◽  
Fixed Effects Model ◽  
Crude Palm Oil ◽  
Phytosanitary Measures ◽  
The Impact

The study of this paper is aimed to evaluate the effects of non-tariff measures (NTM) upon Indonesian crude palm oil (CPO) export in the main destinations. Identified the competitiveness analysis using the Revealed Comparative Advantage index and the impact of the measures has estimated using a panel data gravity model constructed with disaggregated data about bilateral export trade flow of crude palm oil between Indonesia and its main trade partners for the period from 2003 to 2013. NTM represented binary variable that specified with a dummy variable. The gravity model has estimated with a fixed effects model and the results indicated that the existence of trade barriers to trade (TBT) appears to impede the Indonesian exports of CPO. But the existence of sanitary and phytosanitary measures (SPS) which related to food safety and the existence of trade remedy (antidumping, subsidy, safeguard) presented a positive impact upon the Indonesian exports of CPO. Keywords: Export, Non-Tariff Measures (NTM), Sanitary and Phytosanitary (SPS), Trade Barriers to Trade (TBT), Trade Remedy, Crude Palm Oil

The impact of a changing atmosphere on chloroplast function, photosynthesis, yield, and food security

2018 ◽  
Vol 62 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Steven Gutteridge
Keyword(s):  
Food Security ◽  
Adverse Events ◽  
Positive Impact ◽  
Rate Of Change ◽  
Atmospheric Co2 ◽  
Atmospheric Composition ◽  
Molecular Processes ◽  
Food And Feed ◽  
The Impact ◽  
Global Population

A convergence of global factors is adding to the difficulties of securing a sustainable supply of food and feed to support the increasing global population. The positive impact of the rise in atmospheric CO2 on photosynthesis is more than offset by the increase in average global temperatures accompanying the change in atmospheric composition. This article provides a brief overview of how these adverse events affect some of the critical molecular processes of the chloroplast and by extension how this impacts the yields of the major crops. Although the tools are available to introduce genetic elements in most crops that will mitigate these adverse factors, the time needed to validate and optimize these traits can be extensive. There is a major concern that at the current rate of change to atmospheric composition and the accompanying rise in temperature the benefits of these traits may be rendered less effective soon after their introduction.

scholarly journals ECONOMIC SHOCKS ON PARTNERS’ TRADE; AFRICA AND ASEAN ON CHINA

2021 ◽  
pp. 11-24
Author(s):  
Emmanuel Yamoah Cobbold ◽  
Dan Owusu
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Shocks ◽  
Macroeconomic Shocks ◽  
The World ◽  
Per Capita ◽  
The Impact ◽  
Trade Partners

This research studies the impact of macroeconomic shocks from African and the Association of Southeast Asian Nations (ASEAN) on China’s bilateral trade with them. Data on (GDP) per capita, FDI, inflation, unemployment rates, and trade openness (TO) of China’s African and ASEAN partners were sourced from the World Bank whilst imports and exports data were from the world integrated trade solutions (WITS). It uses the gravity model as a basis and the panel corrected standard errors (PCSE) as well as multivariate regression estimators. The findings reveal that per capita of China’s partners have a strong positive impact on trade with them. Trade openness is reported to increase China’s imports but reduce exports to these partners. Further, an increase in FDI inflows to China’s trade partners leads to an increase in both imports and exports of China. KEYWORDS: Economic shocks, international trade, China, Africa, ASEAN, gravity model

scholarly journals Globalization and export flows between Eurasian Economic Union countries: a gravity model approach

2020 ◽  
Vol 74 ◽  
pp. 06001
Author(s):  
Juliet Abakumova ◽  
Olena Primierova
Keyword(s):  
Gravity Model ◽  
Positive Impact ◽  
Gravity Models ◽  
Trade Integration ◽  
Transport Costs ◽  
Integration Model ◽  
Time Estimates ◽  
Eurasian Economic Union ◽  
Model Approach

In the empirical tools for the research of trade integration a special place is occupied by gravity models, insofar as these models have rather high accuracy in explaining mutual trade flows. Recently, however, the gravity model approach has been subjected to critical rethinking: globalization brought considerable changes not only in economic growth, but also in international trade, what allowed speaking about a “Death of Distance”. At the same time, estimates based on gravity models almost always demonstrated an increase in the coefficient of distance as a proxy for transport costs, which contradicts the general perception of the phenomenon of globalization. The paper is devoted to testing the validity of inclusion of the globalization index in the model, which would allow consider the role of globalization in bilateral cross-country trade, as well as testing the hypothesis of reducing the coefficient of distance. Based on the annual panel data over the period 2000-2016 the trade integration model for the EEU countries was estimated. To test the hypothesis of a decrease in the estimated coefficient of distance over time, the gravity model was also evaluated at different time intervals. And the positive impact of the globalization factor on the volume of exports is revealed.

Influence of Russian Sanctions on Agricultural Trade between Russia and the European Union

2020 ◽  
Vol 23 (1) ◽  
pp. 13-26
Author(s):  
Stanislava Kontsevaya ◽  
Luboš Smutka
Keyword(s):  
European Union ◽  
European Country ◽  
Gravity Model ◽  
Regression Models ◽  
Trade Flow ◽  
Agricultural Trade ◽  
The European Union ◽  
Us Dollar ◽  
Classical Gravity ◽  
The Impact

Abstract The European Union is Russia’s largest agricultural trading partner, and this cooperation has a long history. The imposition of sanctions on certain product groups in 2014 significantly affected trading relations. A gravity model helps us to understand and evaluate the characteristics of agricultural trade between countries. The aim of the research is to compare the agricultural trade flow between Russia and the European Union for the period 2000-2017, find some regularity, and estimate the influence of Russian sanctions using regression models for each European country and for particular types of agricultural products. The dataset sample consists of 12,096 observations and 29 countries. The gravity model of the dependence on Russia of imports and exports from each European country takes into account such variables as GDP (US dollar), distance (km) and dummies (a common border, common language, common history and seaport availability). The findings of the research are as follows: the classical gravity model is feasible for imports from Russia to EU countries. Thus, the smaller the distance between countries, the greater the trade flow between them, and the larger the GDP of both countries, the greater the trade flow between them. In addition, the gravity model is feasible not only for countries, but also for the particular group of products. The results of the cluster analysis show the impact of sanctions on each of 24 groups of products imported into Russia (not just those products that have been under Russian sanctions). It is possible to say that the impact of sanctions is deeper than previously thought.

Assessing the Impact of Great Recession on India’s Trade in Gravity Model Framework

2018 ◽  
Vol 53 (4) ◽  
pp. 239-270 ◽  
Author(s):  
Raj Rajesh
Keyword(s):  
Gravity Model ◽  
Great Recession ◽  
Global Economy ◽  
Emerging Market ◽  
Jel Classification ◽  
Total Trade ◽  
Model Framework ◽  
Indian Economy ◽  
Trade Channel ◽  
The Impact

This study examines the efficacy of trade channel in the transmission of recent Great Recession impulses to the Indian economy. To investigate the impact of Great Recession on India’s trade, gravity model of trade was estimated by regressing trade flows on size of economies, level of economic development, geographical distance and dummies for common border, landlocked country, islands, colonial history, common language, etc. For the same, quarterly data with respect to 11 advanced nations (namely, Austria, Australia, Canada, Denmark, Japan, Korea, New Zealand, Sweden, Switzerland, the United Kingdom and the USA) and nine emerging market economies (EMEs), including the BRICS nations (namely, Brazil, Russia, Indian, China, South Africa; Indonesia, Mexico, Saudi Arabia and Turkey) for the period from 2001q1 to 2013q4 were considered. Estimations suggest that Great Recession had an adverse impact on India’s bilateral import volume and total trade volume after a lag of three quarters. Findings validate that trade channel acted as a conduit for transmission of Great Recession impulses to the Indian economy. This suggests that as the Indian economy becomes progressively more integrated with the global economy, containment of potential adverse shocks emanating from trade sector would call for more pro-active policies. Lessons from the Indian economy could be useful for other similar EMEs. JEL Classification: F14, G01

Determinants of bilateral trade between China and Africa: a gravity model approach

2020 ◽  
Vol 47 (5) ◽  
pp. 1015-1038
Author(s):  
Zhijie Guan ◽  
Jim Kwee Fat Ip Ping Sheong
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Economic Recession ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Negative Effects ◽  
Content Type ◽  
Factors Affecting ◽  
The Impact ◽  
Model Approach

PurposeThe main purpose of this paper is to analyse the different factors affecting Sino-African trade based on the gravity model, and propose some solutions to improve the problems.Design/methodology/approachThe paper is based on an extended gravity model, including trade agreement and recession as explanatory variables. The impacts of trade agreement and economic recession on Sino-African imports and exports are examined.FindingsThe results show that the product of GDP affects African exports to China significantly and negatively, and affects African imports from China positively. Real exchange rate affects African exports to China positively, and affects African imports from China negatively. Population affect African exports to China significantly and positively, and affect African imports from China positively. Recession have negative effects on both African imports from China and exports to China but is only significant for imports. Agreement affects African imports from China and exports to China positively. Our findings confirm the impact of economic recession, and imply that the structure of African product exported to China should be improved, and trade agreements should be reinforced.Originality/valueThis paper contributes and extends the literature on Sino-African trade by improving the traditional gravity model to include the impact of all trade agreements, and their aggregating effects on trade. The paper also seeks to assess the trade impact of economic recession through a dynamic gravity model approach for which there has been no research done to our knowledge. In this regard, it provides new understanding of the trade pattern between China and Africa, and ways in improving the Sino-African bilateral trade.

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