IDEAS home Printed from https://ideas.repec.org/a/taf/japsta/v26y1999i2p185-193.html
   My bibliography  Save this article

Stochastic varying coefficients gravity model: An application in trade analysis

Author

Abstract

In international trade analysis between countries, the central theme is the examination of whether or not there are any significant diff erences between the actual trade and potential trade, given the determinants of trade flows. Thus, estimating the potential trade is an important component in trade analysis. The objective of this paper is to suggest a methodology to estimate the potential trade flows between countries, using the gravity model, which has been established in the literature as the most successful empirical trade flow equation, usually producing a good fit. The application of the method has been demonstrated using trade flows between Australia and its trading partners in the Indian Ocean Rim.

Suggested Citation

  • K. Kalirajan, 1999. "Stochastic varying coefficients gravity model: An application in trade analysis," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(2), pages 185-193.
    • Handle: RePEc:taf:japsta:v:26:y:1999:i:2:p:185-193
    DOI: 10.1080/02664769922520
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02664769922520
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02664769922520?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Drysdale, Peter & Garnaut, Ross, 1982. "Trade Intensities and the Analysis of Bilateral Trade Flows in a Many-Country World : A Survey," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 22(2), pages 62-84, February.
    2. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    3. Swamy, P A V B, 1970. "Efficient Inference in a Random Coefficient Regression Model," Econometrica, Econometric Society, vol. 38(2), pages 311-323, March.
    4. Yamazawa, Ippei, 1970. "Intensity Analysis of World Trade Flow," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 10(2), pages 61-90, February.
    5. 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. 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.
    2. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    3. Koo, Won W. & Taylor, Richard D. & Karemera, David, 1992. "Determinants of Red Meat Trade Flows," Agricultural Economics Reports 23448, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    5. Khan, Imran Ullah & Kalirajan, Kaliappa, 2011. "The impact of trade costs on exports: An empirical modeling," Economic Modelling, Elsevier, vol. 28(3), pages 1341-1347, May.
    6. Jacqueline Karlsson & Helena Melin & Kevin Cullinane, 2018. "The impact of potential Brexit scenarios on German car exports to the UK: an application of the gravity model," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-22, December.
    7. Han, Gaofeng & Kalirajan, Kaliappa & Singh, Nirvikar, 2002. "Productivity and economic growth in East Asia: innovation, efficiency and accumulation," Japan and the World Economy, Elsevier, vol. 14(4), pages 401-424, December.
    8. Alemayehu Geda & Atnafu Meskel, 2008. "China and India's Growth Surge: Is it a curse or blessing for Africa? The Case of Manufactured Exports," African Development Review, African Development Bank, vol. 20(2), pages 247-272.
    9. Kalirajan Kaliappa & Paudel Ramesh, 2015. "India’s Trade Deficit with China: Will Free Trade Agreement (FTA) Work for India?," Global Economy Journal, De Gruyter, vol. 15(4), pages 485-505, December.
    10. Cristina Di Stefano & P. Lelio Iapadre & Ilaria Salvati, 2021. "Trade and Infrastructure in the Belt and Road Initiative: A Gravity Analysis Based on Revealed Trade Preferences," JRFM, MDPI, vol. 14(2), pages 1-15, January.
    11. repec:era:chaptr:2013-rpr-29-06 is not listed on IDEAS
    12. Maria Amparo Toral, 2001. "Regional growth and convergence in the Spanish Provinces," ERSA conference papers ersa01p193, European Regional Science Association.
    13. repec:ebl:ecbull:v:6:y:2008:i:48:p:1-14 is not listed on IDEAS
    14. Bandara, Yapa M.W.Y. & Karunaratne, Neil D., 2010. "An empirical analysis of Sri Lanka's Manufacturing Productivity slow-down," Journal of Asian Economics, Elsevier, vol. 21(4), pages 391-403, August.
    15. Enkhbold Vorshilov & Nomintsetseg Ulzii-Ochir, 2016. "Analyzing the Impacts of Mongolia's Trade Costs," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 4(2), pages 3-19, November.
    16. Shiro Armstrong, 2007. "Measuring Trade and Trade Potential: A Survey," Asia Pacific Economic Papers 368, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    17. Sheng, Yu & Wu, Yanrui & Shi, Xunpeng & Zhang, Dandan, 2015. "Energy trade efficiency and its determinants: A Malmquist index approach," Energy Economics, Elsevier, vol. 50(C), pages 306-314.
    18. Ted Juhl & Oleksandr Lugovskyy, 2014. "A Test for Slope Heterogeneity in Fixed Effects Models," Econometric Reviews, Taylor & Francis Journals, vol. 33(8), pages 906-935, November.
    19. Koo, Won W., 1990. "Determinants Of World Wheat Trade Flows And Policy Analysis: An Application Of Gravity Model," 1990 Annual meeting, August 5-8, Vancouver, Canada 271042, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Shehu U.R. Aliyu & Sani Bawa, 2015. "Gravity model by panel data approach: empirical evidence from Nigeria," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 8(1), pages 42-57.
    21. Mohd Hussain Kunroo & Imran Ahmad, 2023. "Heckscher-Ohlin Theory or the Modern Trade Theory: How the Overall Trade Characterizes at the Global Level?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(1), pages 151-174, March.
    22. Dinda, Soumyananda, 2018. "Climate Friendly Goods and Technology Trade: Climate Mitigation Strategy of India," MPRA Paper 93031, University Library of Munich, Germany, revised 2018.

    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:taf:japsta:v:26:y:1999:i:2:p:185-193. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJAS20 .

    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.