scholarly journals Determinants of Swaziland’s Sugar Export: A Gravity Model Approach

2016 ◽  
Vol 8 (10) ◽  
pp. 71 ◽  
Author(s):  
Sotja G. Dlamini ◽  
Abdi-Khalil Edriss ◽  
Alexander R. Phiri ◽  
Micah B. Masuku
Keyword(s):  
Social Services ◽  
Gravity Model ◽  
Sugar Industry ◽  
Study Objective ◽  
Positive Effects ◽  
Trading Partners ◽  
Negative Effect ◽  
The Government ◽  
Model Approach ◽  
Sugar Exports

The sugar industry in Swaziland is the highest contributor to the government treasury through taxation, social services and trade. The sugar industry also plays a crucial role in the Swaziland’s economy by influencing economic growth and employment. Given the role of the Swaziland’s sugar industry, it is therefore important to understand the influencing factors of the Swaziland sugar exports volumes to its major trading partners. The study objective was to analyze the factors determining sugar export from Swaziland to her trading partners using a gravity model approach. The study used panel dataset for the period 2001 to 2013. The results showed that Swaziland’s GDP, importer’s GDP, importer’s land area and official common language had significant positive effects on Swaziland’s sugar exports. The study further revealed that the creation of COMESA and EU trading blocs had significant positive effects on the Swaziland’s sugar exports. This implies that the above-mentioned factors have contributed to the sugar trade flows increase during the time period under study. On the other hand, importer’s population, Swaziland openness and distance between Swaziland and her trading partner’s capital cities had a significant negative effect on Swaziland’s sugar export flows. It is therefore recommended that policies that lead to the exceptional advancement of the Swaziland and importer’s economy should be promoted which will have an effects on the Swaziland GDP and importer’s GDP. Trading with less self-sufficient, neighbouring countries and deepening the economic integration processes enhances Swaziland sugar exports flows.

Entrepreneurs’ Competencies and Competitive Advantages: A Study on Malaysian Microenterprises

2019 ◽  
pp. 097215091985493
Author(s):  
Syed Ali Fazal ◽  
Abdullah Al Mamun ◽  
Ghazali Bin Ahmad ◽  
Muhammad Mehedi Masud
Keyword(s):  
Competitive Advantage ◽  
Low Income ◽  
Peninsular Malaysia ◽  
Policy Implications ◽  
Business Success ◽  
Cross Sectional ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Relationship Competency

Considering the significance of relevant competencies towards business success and the dependency of socio-economical vulnerable micro-entrepreneurs on their enterprise income, this study examined the effect of entrepreneurs’ competencies (i.e., opportunity recognizing competency, strategic competency, organizing competency, relationship competency, conceptual competency and commitment competency) on the competitive advantage of microenterprises in Malaysia. This study adopted a cross-sectional research design and collected quantitative data from 300 randomly selected respondents from Peninsular Malaysia. The findings revealed significant positive effects of organizing and commitment competency on the competitive advantage with a significantly negative effect of relationship competency on the competitive advantage. Apart from enriching the current literature, this study offers significant policy implications for the government and socio-developmental organizations in Malaysia for improving the micro-entrepreneurship and uplifting large low-income groups from poverty.

scholarly journals Indonesian Export Efficiency : A Stochastic Frontier Gravity Model Approach

2019 ◽  
pp. 488-497 ◽  
Author(s):  
Dewi Solikhah Noviyani ◽  
Widyastutik NA ◽  
Tony Irawan
Keyword(s):  
Gravity Model ◽  
Export Performance ◽  
Stochastic Frontier ◽  
Affecting Factors ◽  
Factors Affecting ◽  
Merchandise Export ◽  
Trading Partners ◽  
Restrictive Measures ◽  
Business Freedom ◽  
Model Approach

Export performance is an important aspect to encourage economic growth and economic prosperity. Export performance can be analysed using export efficiency variable. Export efficiency can be defined as ratio of the actual to potential exports. Knowing the export efficiency and factors affecting it could help policy maker to minimize and mitigate the affects of existing restrictive measures of trade. This study was conducted to analys the efficiency of Indonesia's merchandise exports and the affecting factors using stochastic frontier gravity model. Result of this study shown that Indonesian merchandise export flows with 62 trading partners is significantly positively affected by Gross Domestic Product (GDP) and population, then significantly negatively affected by bilateral distance. The study also found that the average export efficiency of Indonesia to 62 trading partner countries up to 51.35 percent in 2012 and 49.69 percent in 2016. The highest value of export efficiency was in Singapore and the lowest was in Portugal. Result of technical inefficiency model reveals that export inefficiency increased by business freedom, investment freedom, and landlocked dummy, and then export inefficiency decreased by labor freedom, financial freedom, contig dummy and FTA dummy.

scholarly journals THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Dian Citra Amelia
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Government Expenditure ◽  
Negative Influence ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

scholarly journals THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA

2019 ◽  
Vol 8 (1) ◽  
pp. 34
Author(s):  
Dian Citra Amelia ◽  
Sri Fajar Ayu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Government Expenditure ◽  
Negative Influence ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

scholarly journals Factors influencing Vietnam’s handicraft export with the gravity model

2019 ◽  
Vol 21 (2) ◽  
pp. 156-171
Author(s):  
Luong Anh Thu ◽  
Sun Fang ◽  
Sham Sunder Kessani
Keyword(s):  
Gravity Model ◽  
Large Scale ◽  
Past Research ◽  
International Markets ◽  
Content Type ◽  
Factors Affecting ◽  
Factors Influencing ◽  
The World ◽  
Trading Partners ◽  
The Government

Purpose The purpose of this paper is to investigate the factors that affect handicraft export from Vietnam to trading partners in the period 2007–2017, and how those factors influence the export of handicraft products of Vietnam. Design/methodology/approach The research uses the approach of gravity model based on panel data to evaluate the export of Vietnamese handicraft to 50 main trading partners, covering the period from 2007 to 2017. Findings The estimated results reveal that Vietnam’s GDP, importer’s GDP, trading partner’s population, Vietnam’s inflation, the economic distance between Vietnam and importer, the openness of Vietnam, importing country’s common language and the issue that both Vietnam and importer are member of APEC are the main factors affecting Vietnamese handicraft export. Research limitations/implications This study also has some limitations. It is limited in the data, as some other areas in the world have not been observed and included in the research. In the future, a study with large-scale data of space and time should be conducted, which will certainly give a universal result and fewer errors. However, this paper, in our opinion, provides a significant result and may help the government and policy makers to undertake appropriate measures to improve and promote the export of Vietnamese handicrafts to the world markets. Practical implications The research describes the current situation, and it studies factors influencing Vietnam’s handicraft export using the qualitative analysis. The result should be useful for the policy maker and enterprises to promote export activities of Vietnamese handicrafts to international markets. Social implications Handicraft export of Vietnam plays an important part in retaining the culture value and social development as well as encouraging sustainable development for the rural poor within the country. Originality/value The past research related to Vietnamese handicraft export almost analyzed the situation to promote export handicrafts. This research is based on the study of factors affecting trade and the gravity model to elaborate and supplement the factors that affect the export of handicraft in accordance with the actual conditions of Vietnam.

scholarly journals Financial Support of Housing and Utilities Services Sphere

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Marina Avdyushina ◽  
Anastasiya Gyndenova
Keyword(s):  
Social Services ◽  
Financial Support ◽  
Capital Intensity ◽  
Irkutsk Oblast ◽  
Negative Effect ◽  
The Government ◽  
Mutual Relations ◽  
Private Investors ◽  
Utilities Services

Housing and utilities sector has remained a topical issue over a long period of time and is closely connected with governmental tasks of improving the quality of providing the population with social services and creating investments opportunities. The increase of the sector efficiency in terms of the regional specificity is affected by such factors: the state of the industrial infrastructure, the level of capital intensity of the operating productions, the features of financial support of the housing and utilities enterprises in Irkutsk Oblast. There are a number of features in the Irkutsk Oblast housing and utilities sector that restrict attraction of private investments. The government works out the projects of increasing their attractiveness with the aim of lowering the share of their participation in financing the sector. The most significant ways of developing the housing and utilities sector (HUS) in Irkutsk Oblast, presented ion the article, include the level of regional acceptability of the rate methods, increasing the quality of public-private cooperation, introducing the ways of lowering the HUS enterprises loan debts. All of them are being implemented depending on the possibility of supporting their effective financing. An issue is raised in the tariff policy about the negative effect of the short-term tariffs for services and products, which can lower the investment risks, a task that is hard to perform at the present time, not involving all types of services. Public-private cooperation can contribute to attracting private investors through making concession agreements that determine and establish mutual relations for defending their interests but strongly restricts the investors rights. The loan debts as a negative factor of attracting private investors in the HUS sphere slow down the development of the sector.

scholarly journals Tourism and Trade Nexus in Africa: A Gravity Model Approach

2021 ◽  
pp. 793-804
Author(s):  
Geoffrey Manyara ◽  
Laura Naliaka
Keyword(s):  
Gravity Model ◽  
Free Trade Area ◽  
Tourism Industry ◽  
Regional Trade ◽  
Trade Area ◽  
Regional Tourism ◽  
Percent Increase ◽  
Trading Partners ◽  
Pseudo Maximum Likelihood ◽  
Model Approach

The tourism industry is now an important economic sector in Africa. However, as with trade, Africa’s global share of the tourism industry is quite small, which could be attributed to a similarly low level of both intra-regional trade and tourism. Prevailing data and studies suggest that there is a relationship between tourism and trade. The aim of this study, therefore, is to examine the empirical link between tourism and exports in Africa for the period 2006 to 2015. We estimate a structural gravity model using the Poisson pseudo maximum likelihood (PPML) estimator that allows for bilateral zero trade values between trading partners, controls for heteroskedasticity and addresses the potential endogeneity. We find that a 10 percent increase in intra-African tourism boosts the continental exports by between 1.4 and 3.2 percent. These results strongly posit that boosting regional tourism could be instrumental in catalysing intra-African trade, especially within the context of the African Continental Free Trade Area (AfCFTA).

Economic Effects of Tariff Liberalization of Prospective India-GCC FTA: A Computable General Equilibrium Analysis

2019 ◽  
Vol 54 (3) ◽  
pp. 224-252
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Computable General Equilibrium ◽  
Economic Effects ◽  
Equilibrium Analysis ◽  
Welfare Gains ◽  
Trade Relations ◽  
Positive Effects ◽  
Gcc Countries ◽  
Trading Partners ◽  
Negative Effect ◽  
Tariff Liberalization

The trade relations between India and the Gulf Cooperation Council (GCC) countries have been intensified during the last two decades. The GCC has emerged as one of the largest trading partner of India. This article attempts to investigate the result of tariff liberalization on welfare, output, employment and the potential trade flows between India and the GCC region using the GTAP-model. The study reveals that tariff liberalization has positive effects on India and GCC countries, with no or nominal negative effect on the rest of the world. Overall results show that India’s trade relation with GCC countries is increasing continuously, but still there is a lot of untapped potential to bring the welfare gains for both trading partners. Finally, the study concludes that the proposed economic integration in terms of FTA between India and GCC will be mutually beneficial and welfare enhancing, and a case of a win–win situation. JEL Codes: F1, F13, F14, F17

Evaluating Asian Free Trade Agreements: What Does Gravity Model Tell Us?

2020 ◽  
Vol 56 (1) ◽  
pp. 60-70
Author(s):  
Sunder Ramaswamy ◽  
Abishek Choutagunta ◽  
Santosh Kumar Sahu
Keyword(s):  
Gravity Model ◽  
Free Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Flows ◽  
Transport Infrastructure ◽  
Total Trade ◽  
Jel Codes ◽  
Positive Effects ◽  
Negative Effect

This paper evaluates the performance of Free Trade Agreements (FTAs) by analysing the determinants of trade flows of Asian economies for a panel of 31 countries during 2007–2014 using a Gravity model. The estimated results suggest that certain FTAs negatively contribute to trade flows across the region and, that GDP and population, among other factors, can explain total trade flows. This study also finds that trade costs using distance as a proxy has a significant and negative effect on trade. Our results are in-line with the expectations which can be drawn by looking at trends of trade flows in Asia. Thus, a case is attempted for smoothening trade-flows across the region by reducing tariff and non-tariff barriers, pumping in investments on transport infrastructure and improving productivity of the partners as a whole which has positive effects on GDP and thus trade. JEL Codes: F13, F14, C23

scholarly journals Ekspor Karet Indonesia ke-15 Negara Tujuan Utama Setelah Pemberlakuan Kebijakan ACFTA

TRIKONOMIKA ◽  
2013 ◽  
Vol 12 (1) ◽  
pp. 20 ◽  
Author(s):  
Marlina Banne Lembang ◽  
Yulius Pratomo
Keyword(s):  
Gravity Model ◽  
Positive Impact ◽  
Export Performance ◽  
Gdp Per Capita ◽  
Factors Affecting ◽  
Rubber Market ◽  
Trading Partners ◽  
Per Capita ◽  
The Government ◽  
Positive Effect

The objective of this study is to examine factors affecting Indonesia’s rubber export performance to Indonesia’s 15 main trading partners after the implementation of ACFTA. This research employs Bergstrand Gravity Model (1985) using 105 observation for 15 countries from 2004 to 2010. Then, the gravity model is estimated by applying random effects (RE) model. The results show that, first, GDP per capita of Indonesia’s main trading partners have significantly positive impact on export. Surprisingly, distance has significantly positive effect on Indonesia’s rubber export. Further, Indonesia’s rubber major export destinations are the member of ACFTA, i.e. China and Singapore. Last, some of the non member countries are still potential to be Indonesia’s rubber market. Therefore, the Government of Indonesia should increase trading with them.

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