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The Gravity Model Approach: An Application on the Eco Was Trading Bloc

Author

Listed:
  • Luqman Afolabi O.

    (School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia)

  • Abu Bakar Nor Aznin

    (Associate Professor, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia)

  • Mukhriz Izraf Azman Aziz

    (Senior Lecturer, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia)

Abstract

This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The methodology carried out to achieve this objective involves the use of various techniques of estimation for the gravity model (Static and dynamic). More specifically, this study aims to investigate the formational impact of regional trade integration agreements on trade flows within a group of countries using the same currencies and ECOWAS at large. The main use of regional variables into gravity models is intended to determine whether RTAs lead to trade creation, or diversion. The results show the presence of a strong relationship among the factors of both RIAs and trade flows.

Suggested Citation

  • Luqman Afolabi O. & Abu Bakar Nor Aznin & Mukhriz Izraf Azman Aziz, 2016. "The Gravity Model Approach: An Application on the Eco Was Trading Bloc," South East European Journal of Economics and Business, Sciendo, vol. 11(1), pages 67-75, April.
    • Handle: RePEc:vrs:seejeb:v:11:y:2016:i:1:p:67-75:n:5
    DOI: 10.1515/jeb-2016-0005
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    Cited by:

    1. Kersan-Škabić Ines, 2021. "Information and Communication Technology Development and Foreign Trade in the Region of South-East Europe," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 101-113, December.

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