IDEAS home Printed from https://ideas.repec.org/p/iae/iaewps/wp2000n05.html
   My bibliography  Save this paper

Modelling Export Activity of Eleven APEC Countries

Author

Listed:
  • László Mátyás

    (Central European University, Hungary, Budapest University of Economics, Hungary)

  • László Kónya

    (Victoria University, Australia)

  • Mark N. Harris

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne and Central European University, Hungary)

Abstract

The gravity model has long been used for modelling and predicting trade flows. This paper generalises the gravity model allowing for proper representation of local and target country effects and also the business cycle. The new approach is based on a panel data framework (instead of a simple cross sectional or time series approach) where the additional information available from using both types of dat a (i. e. cross sectional and time series) is utilised to properly model all the specific effects. The model is applied to a panel of APEC countries.

Suggested Citation

  • László Mátyás & László Kónya & Mark N. Harris, 2000. "Modelling Export Activity of Eleven APEC Countries," Melbourne Institute Working Paper Series wp2000n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2000n05
    as

    Download full text from publisher

    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2000n05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
    2. 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.
    3. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, May.
    4. Aitken, Norman D, 1973. "The Effect of the EEC and EFTA on European Trade: A Temporal Cross-Section Analysis," American Economic Review, American Economic Association, vol. 63(5), pages 881-892, December.
    5. Thursby, Jerry G & Thursby, Marie C, 1987. "Bilateral Trade Flows, the Linder Hypothesis, and Exchange Risk," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 488-495, August.
    6. Matyas, L. & Konya, L. & Harris, M.N., 1997. "Modelling Export Activity in a Multicountry Economic Area : The APEC Case," Monash Econometrics and Business Statistics Working Papers 1/97, Monash University, Department of Econometrics and Business Statistics.
    7. Brad Christerson, 1994. "World Trade in Apparel: An Analysis of Trade Flows Using the Gravity Model," International Regional Science Review, , vol. 17(2), pages 151-166, August.
    8. 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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sophie Chauvin, 2001. "Exit Options for Argentina with a Special Focus on Their Impact on External Trade," Working Papers 2001-07, CEPII research center.
    2. Shinyekwa, Isaac & Othieno, Lawrence, 2013. "Comparing the Performance of Uganda’s Intra-East African Community Trade and Other Trading Blocs: A Gravity Model Analysis," Research Series 150227, Economic Policy Research Centre (EPRC).
    3. Yongcheol Shin & Laura Serlenga, 2007. "Gravity models of intra-EU trade: application of the CCEP-HT estimation in heterogeneous panels with unobserved common time-specific factors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 361-381.
    4. Michida, Etsuyo & Atici, Cemal & Kojima, Michikazu, 2011. "Does Quality Matter in the Iron and Scrap Trade?," IDE Discussion Papers 282, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Shinyekwa, Isaac & Lawrence, Othieno, 2013. "Comparing the Performance of Uganda’s Intra-East African Community Trade and Other Trading Blocs: A Gravity Model Analysis," Research Series 159667, Economic Policy Research Centre (EPRC).
    6. Petr Polak & Nikol Polakova & Anna Tlusta, 2020. "How Bad Are Trade Wars? Evidence from Tariffs," Working Papers 2020/15, Czech National Bank, Research and Statistics Department.
    7. Yongcheol Shin & Laura Serlenga, 2004. "Gravity Models of the Intra-EU Trade: Application of the Hausman-Taylor Estimation in Heterogeneous Panels with Common Time-specific Factors," Econometric Society 2004 Far Eastern Meetings 671, Econometric Society.

    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. Pemasiri J Gunawardana & Ramya Hewarathna, 2000. "The Asian Crisis and Australia-East Asia Trade Flows: A Modified Gravity Approach," Working Papers 2000.13, School of Economics, La Trobe University.
    2. Zhang, Daowei & Li, Yanshu, 2009. "Forest endowment, logging restrictions, and China's wood products trade," China Economic Review, Elsevier, vol. 20(1), pages 46-53, March.
    3. Matyas, L. & Konya, L. & Harris, M.N., 2004. "Modelling Export Activity of Eleven APEC Countries, 1978-1997," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(4).
    4. Nguyen Trung Kien & Yoshizo Hashimoto, 2005. "Economic Analysis Of Asean Free Trade Area; By A Country Panel Data," Discussion Papers in Economics and Business 05-12, Osaka University, Graduate School of Economics.
    5. Guglielmo Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 573-573, October.
    6. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    7. 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.
    8. Theo S. Eicher & Christian Henn, 2011. "One Money, One Market: A Revised Benchmark," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 419-435, August.
    9. 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.
    10. Andres Faiña & Jesus Lopez-Rodríguez, 2003. "Population Potentials and Development Levels: Empirical Findings in the European Union," ERSA conference papers ersa03p30, European Regional Science Association.
    11. 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.
    12. 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, June.
    13. Sylvanus Kwaku Afesorgbor, 2013. "Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods," Economics Working Papers 2013-13, Department of Economics and Business Economics, Aarhus University.
    14. H. Mikael Sandberg & James Seale & Timothy Taylor, 2006. "History, regionalism, and CARICOM trade: A gravity model analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 795-811.
    15. Ghosh, Sucharita & Yamarik, Steven, 2004. "Does trade creation measure up? A reexamination of the effects of regional trading arrangements," Economics Letters, Elsevier, vol. 82(2), pages 213-219, February.
    16. Marjan Petreski, 2018. "Has CEFTA Increased Members’ Mutual Trade? Evidence with an Enlarged Set of Plausibly Exogenous Instruments," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 68(3), pages 294-317, July.
    17. Skripnitchenko, Anatoliy & Beladi, Hamid & Koo, Won W., 2004. "Preferential Trade Arrangements: Impacts On Agricultural Trade And Income," 2004 Annual meeting, August 1-4, Denver, CO 20260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Ruwan Jayathilaka & Nandasiri Keembiyahetti, 2009. "Adverse Selection Effect for South Asian Countries in FTA Formation," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 1-30, January.
    19. Jong‐Wha Lee & Innwon Park & Kwanho Shin, 2008. "Proliferating Regional Trade Arrangements: Why and Whither?," The World Economy, Wiley Blackwell, vol. 31(12), pages 1525-1557, December.
    20. Neil Foster & Robert Stehrer, 2011. "Preferential trade agreements and the structure of international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 385-409, September.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    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:iae:iaewps:wp2000n05. 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: Sheri Carnegie (email available below). General contact details of provider: https://edirc.repec.org/data/mimelau.html .

    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.