IDEAS home Printed from https://ideas.repec.org/a/sae/soueco/v2y2001i2p171-201.html
   My bibliography  Save this article

Impact of the Enlargement of APEC on South Asia: An Analysis of Trade Potential â€

Author

Listed:
  • R.H.S. Samaratunga

    (Department of National Planning, Sri Lanka)

  • Sisira Jayasuriya

    (Department of Economics and Finance, La Trobe University, Australia)

  • David Prentice

    (Department of Economics and Finance, La Trobe University, Australia)

Abstract

APEC-South Asian trade has attracted very little attention among researchers although the APEC region has become South Asia's most important trading part ner. This article provides an analysis of the determinants of trade flows between South Asian and APEC countries, using a gravity trade model (GTM) with some extensions. The model incorporates the conventional variables (income, distance, relative prices, etc.) as well as policy related variables (tariff and non-tariff barriers). This model was also used to conduct trade policy experiments on trade liberaliza tion in the two regions. The results show that the potential for expansion of South Asia's exports to the APEC region is very limited and indicate the need for policy reforms if the region is to achieve its goal of higher exports as a vehicle for growth.

Suggested Citation

  • R.H.S. Samaratunga & Sisira Jayasuriya & David Prentice, 2001. "Impact of the Enlargement of APEC on South Asia: An Analysis of Trade Potential â€," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 2(2), pages 171-201, September.
    • Handle: RePEc:sae:soueco:v:2:y:2001:i:2:p:171-201
    DOI: 10.1177/139156140100200201
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/139156140100200201
    Download Restriction: no
    File URL: https://libkey.io/10.1177/139156140100200201?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wang, Z.K., 1992. "China's Potential Trade : An Analysis Based on the Gravity Model," Discussion Papers 92-24, Department of Economics, University of Birmingham.
    2. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394, Elsevier.
    3. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    4. Geraci, Vincent J & Prewo, Wilfried, 1977. "Bilateral Trade Flows and Transport Costs," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 67-74, February.
    5. Filip Abraham & Erik Buyst & Sven Geyssens, 1997. "Trade integration in the twentieth century: What does Belgian history tell us?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(4), pages 708-736, December.
    6. Masahiro Endoh, 1999. "Trade creation and trade diversion in the EEC, the LAFTA and the CMEA: 1960-1994," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 207-216.
    7. Sanso, Marcos & Cuairan, Rogelio & Sanz, Fernando, 1993. "Bilateral Trade Flows, the Gravity Equation, and Functional Form," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 266-275, May.
    8. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    9. Walter Isard & Merton J. Peck, 1954. "Location Theory and International and Interregional Trade Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 68(1), pages 97-114.
    10. DeRosa, Dean A. & Govindan, Kumaresan, 1996. "Agriculture, trade, and regionalism in South Asia," Journal of Asian Economics, Elsevier, vol. 7(2), pages 293-315.
    11. Dutta, M., 1992. "Asia-Pacific economic cooperation: Structure of a common economic region," Journal of Asian Economics, Elsevier, vol. 3(1), pages 1-27.
    12. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cortes, Maria, 2007. "Composition of Trade between Australia and Latin America: Gravity Model," Economics Working Papers wp07-19, School of Economics, University of Wollongong, NSW, Australia.
    2. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    3. Robert J. R. Elliott & Kengo Ikemoto, 2004. "AFTA and the Asian Crisis: Help or Hindrance to ASEAN Intra‐Regional Trade?," Asian Economic Journal, East Asian Economic Association, vol. 18(1), pages 1-23, March.
    4. Peter Egger, 2000. "Teilprojekt 4: Bilaterale Wirtschaftsbeziehungen zwischen der EU und ausgewählten mittel- und osteuropäischen Ländern (MOEL): Entwicklungen der letzten Jahre und Versuch einer Prognose," WIFO Studies, WIFO, number 19262, Juni.
    5. Beugelsdijk, Sjoerd & Pedersen, Torben & Petersen, Bent, 2009. "Is there a trend towards global value chain specialization? -- An examination of cross border sales of US foreign affiliates," Journal of International Management, Elsevier, vol. 15(2), pages 126-141, June.
    6. Sylvain Petit & Neelu Seetaram, 2019. "Measuring The Effect Of Revealed Cultural Preferences On Measuring The Effect Of Revealed Cultural Preferences On Tourism Exports," Post-Print hal-01924443, HAL.
    7. repec:hal:spmain:info:hdl:2441/dambferfb7dfprc9m01g1j1k2 is not listed on IDEAS
    8. Zwinkels, Remco C.J. & Beugelsdijk, Sjoerd, 2010. "Gravity equations: Workhorse or Trojan horse in explaining trade and FDI patterns across time and space?," International Business Review, Elsevier, vol. 19(1), pages 102-115, February.
    9. J. Sebastián Castillo & Emiliano C. Villanueva & M. Carmen García‐Cortijo, 2016. "The International Wine Trade and Its New Export Dynamics (1988–2012): A Gravity Model Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 466-481, November.
    10. Zenebe, Addisalem & Peterson, Wesley & Wamisho, Kassu, 2014. "The Impact of the African Growth and Opportunity Act (AGOA): An Empirical Analysis of Sub-Saharan African Agricultural Exports," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170590, Agricultural and Applied Economics Association.
    11. Deepak Kumar & Shubham Kumar & Keya Sengupta & Tapas K. Giri, 2022. "Examining the Role of Policy and Cultural Determinants on Sectoral Export Competitiveness: Evidences from India," Global Business Review, International Management Institute, vol. 23(3), pages 694-709, June.
    12. Kenichi Kashiwagi & Erraach Yamna & Lamia Arfa & Lokman Zaibet, 2020. "Growing Olive Oil Export and Intra-Industry Trade in Mediterranean Countries: Application of Gravity Model," Sustainability, MDPI, vol. 12(17), pages 1-16, August.
    13. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    14. Amjad Naveed & Ghulam Shabbir & Shabib Haider Syed & Muhammad Ashfaq & Muhammad Ali Khan, 2022. "Can a path to peace promote export growth? Evidence from Pakistan and its trading partners," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3309-3324, October.
    15. repec:hal:wpspec:info:hdl:2441/dambferfb7dfprc9m01g1j1k2 is not listed on IDEAS
    16. Vangelis Tzouvelekas, 2007. "Accounting for pairwise heterogeneity in bilateral trade flows: a stochastic varying coefficient gravity model," Applied Economics Letters, Taylor & Francis Journals, vol. 14(12), pages 927-930.
    17. Dana Dascal & Konstadinos Mattas & Vangelis Tzouvelekas, 2002. "An analysis of EU wine trade: A gravity model approach," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 8(2), pages 135-147, May.
    18. Michele FRATIANNI & Chang HOON HO, 2007. "On the Relationship Between RTA Expansion and Openness," Working Papers 288, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    19. Maria Cipollina & Luca De Benedictis & Luca Salvatici & Claudio Vicarelli, 2016. "Policy Measurement And Multilateral Resistance In Gravity Models," Working Papers LuissLab 16130, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    20. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
    21. James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, September.
    22. Sandra Poncet, 2006. "Economic Integration of Yunnan with the Greater Mekong Subregion," Asian Economic Journal, East Asian Economic Association, vol. 20(3), pages 303-317, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:soueco:v:2:y:2001:i:2:p:171-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ips.lk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.