Bilateral Export Trade, Outward and Inward FDI: A Dynamic Gravity Model Approach Using Sectoral Data from Malaysia

Tham, Siew Yean; Goh, Soo Khoon; Wong, Koi Nyen; Fadhli, Ahmad

doi:10.1080/1540496x.2017.1402176

Cited by 21 publications

(20 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This study augments the basic model by including several proven essential control variables in the gravity model (Tham et al, 2018). Moreover, to address heterogeneities between countries, panel data are utilized.…”

Section: Methodsmentioning

confidence: 99%

Impact of COVID-19 on Malaysia’s Bilateral Export: Testing for Heterogeneous Effects in the Product Category

Zainuddin

Khairuddin

Hamidi

2022

Asian Economics Letters

View full text Add to dashboard Cite

This study analyzes the impact of COVID-19 on Malaysia’s bilateral export in three categories of goods. The results show that higher numbers of COVID-19 cases among trading partners has led to higher levels of bilateral export for capital and consumption goods. Meanwhile, incremental increases in a trading partner’s policy stringency index has lowered the level of bilateral export for capital goods. These negative impacts highlight the need for support policies to ensure the survival of domestic producers during the current pandemic.

show abstract

Section: Methodsmentioning

confidence: 99%

Impact of COVID-19 on Malaysia’s Bilateral Export: Testing for Heterogeneous Effects in the Product Category

Zainuddin

Khairuddin

Hamidi

2022

Asian Economics Letters

View full text Add to dashboard Cite

show abstract

“…The solve the issues of heterogeneity among countries, more empirical studies have been utilising panel data. Moreover, past studies have proven that the exchange rate is one of the important control variables in trade analysis (Ozcan 2017; Tham et al 2018) 1 . Thus, this study added exchange rate into the standard gravity model and transformed it into a panel dimension in a logarithmic form as follows:…”

Section: Methodsmentioning

confidence: 99%

Dynamics of Malaysia’s Bilateral Export Post Covid-19: A Gravity Model Analysis

2021

JEM

View full text Add to dashboard Cite

The recent pandemic outbreak has distorted international trade flows as the global economic activity reaches a nearstandstill due to stricter movement control imposed by most countries worldwide. Despite gaining the researcher's attention, the impact of Covid-19 on trade performances are still relatively understudied. Hence, this study aims to analyse the impact of the Covid-19 pandemic outbreak on the bilateral sectoral export for Malaysia. This study employs Poisson Pseudo Maximum Likelihood (PPML) regressions to analyse the sectoral impact in gravity models. The findings provide new perspectives on the varying impacts of the current pandemic outbreak on sectoral trade performances. The dummy variables that represent the existence of Covid-19 have significantly reduced bilateral exports for 11 sectors while increased the exports for seven sectors. Meanwhile, the severity of the Covid-19 outbreak (measured by the number of new cases and death cases) in Malaysia has negative impacts on 14 sectors. The reason for this is that when the current pandemic outbreak in Malaysia is more severe, the government has to enforce stricter movement controls that affect productions and reduce exports. On the other hand, the severity of the Covid-19 outbreak in trading partners has positive impacts on the export for 13 sectors in Malaysia. This is because the more severe pandemic outbreak in trading nations causes lower production capacities and thus higher dependence on imported goods. Differences between the impact of Covid-19 existence and severity by sectors should serve as a red flag for Malaysia's policymakers to take immediate actions to minimise the impact of the ongoing pandemic outbreak and maximise gains from sectors that have higher demand post Covid-19. The net negative impact on the export performance further reiterates the need for government intervention policies to ensure domestic firms can withstand the current tide, which then minimises the social and economic impacts and helps the economy to recover.

show abstract

“…Other determinants are bilateral exchange rate fluctuations (Kahouli & Omri, 2017;Narayan & Nguyen, 2016), landlockedness (Kahouli & Omri, 2017;Leng et al, 2020), and logistics performance and capacity (Gani, 2017;Martí et al, 2014;Martí & Puertas, 2017). In addition, recent studies of Kahouli and Maktouf (2015), Kahouli (2016), Kahouli andOmri (2017), andTham et al (2018) have indicated the impact of exporter-importer income difference and economic similarity on bilateral trade. This impact could be positive or negative dependent on the nature of the trading relationship.…”

Section: What Is Trade Gravity Model?mentioning

confidence: 99%

“…Following Kahouli (2016), Kahouli and Maktouf (2015), Leng et al (2020), andTham et al (2018), this paper uses the fixed effect (FE) and random effect (RE) estimation for static panel data. According to Kabir et al (2017), fixed effect estimation allows the intercepts to vary by individuals, which is appropriate for considering national characteristics in the panel data.…”

Section: Baseline Analysismentioning

confidence: 99%

Globalisation, Logistics and Food Supply: Evidence from Vietnam

2021

MJES

View full text Add to dashboard Cite

Most countries satisfy domestic food consumption by importing from foreign supplies, thus highlighting the role of agricultural exports in maintaining and diversifying the global food supply. In the age of globalisation, whether the flourishing number of regional trade agreements (RTAs) has been facilitating greater market access of agricultural and food products is questioned by national governments. Meanwhile, logistics performance has been the bottleneck of emerging economies, which exerts negative impacts on agricultural export competitiveness in foreign markets. Overall, the interlink between globalisation, logistics and food supply has not been addressed adequately. Therefore, this paper employs the trade gravity model to examine the relationship between agricultural exports, RTAs membership, and logistics performance in the case of Vietnam and her 97 major trading partners. Static and dynamic panel data estimation are employed with the methods applied to solving the zero trade and endogeneity concerns. Findings confirm the interlink between globalisation, logistics and food supply. RTAs-based globalisation and logistics policies are intertwined to secure and diversify import-driven food supply. The unified framework for long-term and sustainable development which aims at strengthening the interlink between globalisation, logistics, agriculture and global food supply should be considered in policy formulation.

show abstract

Bilateral Export Trade, Outward and Inward FDI: A Dynamic Gravity Model Approach Using Sectoral Data from Malaysia

Cited by 21 publications

References 42 publications

Impact of COVID-19 on Malaysia’s Bilateral Export: Testing for Heterogeneous Effects in the Product Category

Impact of COVID-19 on Malaysia’s Bilateral Export: Testing for Heterogeneous Effects in the Product Category

Dynamics of Malaysia’s Bilateral Export Post Covid-19: A Gravity Model Analysis

Globalisation, Logistics and Food Supply: Evidence from Vietnam

Contact Info

Product

Resources

About