Leitão, Nuno Carlos and Tripathi, Sabyasachi (2013): Portuguese Trade and European Union: The Gravity Model.
This is the latest version of this item.
Preview |
PDF
MPRA_paper_45994.pdf Download (329kB) | Preview |
Abstract
This research examines the determinants of bilateral trade between Portugal and European Union countries (EU-27) for the period 2000-2010, using a panel data. In this study we revisited the recent contribution as in Charoensukmongkol and Sexton (2011), Samy and Dehejia (2011), Serrano and Pinilla (2012), and Faustino and Proença (2011). The findings show that Portuguese trade flows are according the Linder hypothesis. The international trade is explained by Heckscher-Ohlin theorem. The empirical results demonstrate that geographical distance has a negative and significant effect on bilateral trade, i.e., there is a bilateral trade increase when trade partners are close. The economic dimension and common border are positively correlated with bilateral trade. Our results also support the hypothesis that physical capital endowment has a positive effect on bilateral trade.
Item Type: | MPRA Paper |
---|---|
Original Title: | Portuguese Trade and European Union: The Gravity Model |
Language: | English |
Keywords: | Gravity model, panel data, common border, geographical distance and factor endowment. |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C20 - General C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C30 - General F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation |
Item ID: | 46000 |
Depositing User: | Sabyasachi Tripathi |
Date Deposited: | 09 Apr 2013 11:25 |
Last Modified: | 07 Oct 2019 12:20 |
References: | Anderson, J.E., 1979. A theoretical foundation for the gravity equation. The American Economic Review 69(1), 106-116. Anderson, J.E., 2011. The Gravity Model. Annual Review of Economics 3(1), 133-160. Arellano, M., Bond, S., 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58(2), 277-297. Arellano, M., Bover, O., 1995. Another look at the instrumental variable estimation of errorcomponents models. Journal of Econometrics 68(1), 29-52. Balassa, B., 1966. Tariff reductions and trade in manufactures among industrial countries. American Economic Review 56(3), 466-473. Balassa, B., Bauwens, L., 1987. Intra-industry specialization in multi-country and multi-industry framework. The Economic Journal 97 (388), 923-939. Blundell, R., Bond, S., 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87(1), 115-143. Blundell, R., Bond, S., 2000. GMM estimation with persistent panel data: an application to production functions. Econometric Reviews, 19(3), 321-340. Caves, R., 1981. Intra-industry trade and market structure in the industrial countries. Oxford Economic Papers 33 (2), 203-223. Charoensukmongkol, P., Sexton, S., 2011. The effect of corruption on exports and imports in Latin America and the Caribbean, Latin American Business Review 12(2), 83-98. Deardorff, A., 1998. Determinants of bilateral trade: does gravity work in a Neoclassical World? In: The Regionalization of the World Economy, NBER Chapters, National Bureau of Economic Research, Inc. Eichengreen, B., Irwin, D. 1998. The role of history in bilateral flows. In: Frankel, J. A. (Eds.), The Regionalization of the World Economy, University of Chicago, Press. Faustino, H., Proença, I., 2011. Effects of immigration on intra-industry trade: a Logit analysis. Working Papers No. 2011/19, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. Ferrarini, B., 2012, International trade, domestic market potential and income in developing Asia, Journal of the Asia Pacific Economy 17(1), 127-137. Ghatak, S., Silaghi, M., Daly, V., 2009. Trade and migration flows between some CEE countries and the UK. The Journal of International Trade and Economic Development 18(1), 61-78. Greenaway, D., Hine, R., Milner, C., 1994. Country-specific factors and the pattern of horizontal and vertical intra-industry trade in UK, Wetwirtschaftliches Archiv 130(1), 77-100. Helpman, E., 1987. Imperfect competition and international trade: evidence from fourteen industrial Countries. Journal of the Japanese and International Economics 1(1), 62–81. Hummels, D., Levinsohn. J., 1995, Monopolistic competition and international trade: reconsidering the evidence. Quarterly Journal of Economics 110 (3), 799-836. Krugman, P., 1993. Geography and Trade, First Edition, MIT Press. Leitão, N. C., Dima, B., Dima, S., 2012. Immigration and trade. Ekonomska istraživanja=Economic Research 25(1), 134-143. Martinez-Zarzoso, I., Lehman-Nowak, F., 2003. Augmented gravity model: an empirical application to Mercosur-European Union Trade flows, Journal of Applied Economics 6(2), 291–316. Poyhonen, P., 1963. A tentative model for the volume of trade between countries. Weltwirtschaftliches Archiv 90 (1), 93-99. Rauch, J., 1999. Networks versus markets in international trade. Journal of International Economics 48 (1), 7-35. Samy, Y., Dehejia, V.H., 2011. Trade and labor standards in the European Union: A gravity model approach, The International Trade Journal 25 (5), 581-618. Serrano, R., Pinilla, V., 2012. The long-run decline in the share of agricultural and food products in international trade: a gravity equation approach to its causes, Applied Economics 44(32), 4199-4210. Tinbergen, J., 1962. Shaping the World Economy: Suggestions for an International Economic Policy. The Twentieth Century Fund, New York. Toh, K., 1982. A cross-section analysis of intra- industry trade in U.S manufacturing industries. Weltwirtschaftliches Archiv 118 (2), 281-301. Windmeijer, F., 2005. A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics 126 (1), 25–51. WDI CD-ROM, 2013. World Development Indicators, World Bank, Washington, DC. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/46000 |
Available Versions of this Item
-
Portuguese Trade and European Union: The Gravity Model. (deposited 09 Apr 2013 05:20)
- Portuguese Trade and European Union: The Gravity Model. (deposited 09 Apr 2013 11:25) [Currently Displayed]