Regional integration and trade: A panel cointegration approach to estimating the gravity model

Regional Integration and Trade: A Panel Cointegration Approach to Estimating the Gravity Model

Using a panel data set of bilateral export flows from 12 EU countries to 20 OECD trading partners over the period 1992-2003, a panel cointegration approach to estimating the gravity model is adopted to test for the significance of European regional integration. A comparison of the results indicates that a positive and significant coefficient estimate of the EU dummy variable is found for both t...

A Panel Data Analysis of South Korea’s Trade with OPEC Member Countries: The Gravity Model Approach

Abstract T his paper explains bilateral trade patterns between South Korea and thirteen OPEC member countries over the period 1980-2014 using a gravity model. The estimation results show that the gravity equation fits the data reasonably well. We confirmed the existence of long term relationships between the bilateral trade flows and the main components of gravity model - ...

Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade

This paper assesses the determinants of trade in services using a gravity model, with particular attention given to the role of barriers to services trade. Initially, the application of the gravity equation to services trade is examined. A variety of econometric estimators are tested and the Hausman-Taylor model is found to be the best estimator. The gravity model fits services trade flows in a...

Gravity Model: An Application to Trade between Iran and Regional Blocs

The Gravity Model and Iran's Trade Flows

This article has considered the volume and direction of Iran’s trade using the gravity model. The major issue in this analysis is to explore why Iran over or under-traded with the 76 countries relative to the predicted trade flows of the model. The study attempts to explore the reasons from the respect of both the model itself and Iran’s trade structure. This is done by analysing the performanc...