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Knowledge Assets and Bilateral-Trade Flows in ASEAN-5 Countries: An Extension of Gravity Panel Data Model

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  • Md. Salleh, Mohd Fairuz

    (Fakulti Ekonomi dan Pengurusan Universiti Kebangsaan Malaysia 43600 Bangi Selangor MALAYSIA)

  • Yusoff, Wan Sallha

    (Pusat Pengajian Inovasi Perniagaan dan Teknousahawan Universiti Malaysia Perlis Jalan Kangar-Alor Setar 01000 Kangar Perlis MALAYSIA)

  • Basnan, Norida

    (Pusat Pengajian Perakaunan, Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, MALAYSIA)

  • Tengku Yaacob, Tengku Suriani

    (Pusat Pengajian Inovasi Perniagaan dan Teknousahawan Universiti Malaysia Perlis Jalan Kangar-Alor Setar 01000 Kangar Perlis MALAYSIA)

Abstract

This study analyses knowledge asset as a determinant factor to bilateral trade flows in ASEAN-5 countries, namely, Singapore, Malaysia, the Philippines, Indonesia and Thailand from 2000 to 2015. The gravity model of trade is extended by incorporating the five components of knowledge assets, namely, national’s market capital, financial capital, renewal and development capital, human capital and process capital as explanatory variables. The empirical investigation is based on pooled ASEAN-5 data and done using random effects and fixed effects models. The principle findings corroborate that knowledge assets are positive and have significant effects on bilateral trade flows in ASEAN-5 countries. The consideration of improving human capital and financial capital is vital given that it is a major contribution to the changes of bilateral trade in ASEAN. This study is open for further research on the negative and significant influences of process capital towards bilateral trade flows in ASEAN-5 countries.

Suggested Citation

  • Md. Salleh, Mohd Fairuz & Yusoff, Wan Sallha & Basnan, Norida & Tengku Yaacob, Tengku Suriani, 2018. "Knowledge Assets and Bilateral-Trade Flows in ASEAN-5 Countries: An Extension of Gravity Panel Data Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 19-26.
    • Handle: RePEc:ukm:jlekon:v:52:y:2018:i:2:p:19-26
    DOI: http://dx.doi.org/10.17576/JEM-2018-5202-2
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    References listed on IDEAS

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