ECONOMIC INTEGRATION AMONG THE ASIA-PACIFIC ECONOMIC COOPERATION COUNTRIES: Linder Effect on Developed and Developing Countries (1985-1999)

Tang, Donny

doi:10.1080/08853900309536

Cited by 5 publications

(7 citation statements)

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“…According to Linder Hypothesis, countries with similar level of per capita income tend to trade more with each other because they have the most similar demand patterns, and produce similar but differentiated products (Markusen et al, 1995). The positive sign fits standard H-O-S framework (e.g., Peridy, 2005), whereas a negative sign supports the Linder hypothesis (e.g., Tang, 2003).…”

Section: Residual Termsupporting

confidence: 60%

“…Therefore, it is expected that trade increases with the country size, as measured by GDP (Chionis and Liargovas, 2002;See Frankel, 1993), with other factors kept constant. Elliott and Ikemoto (2004), Tang (2003), andRoberts (2004) incorporated per capita GDP difference variable, log (|GDPC i -GDPC j |), in order to test for the Linder Hypothesis. According to Linder Hypothesis, countries with similar level of per capita income tend to trade more with each other because they have the most similar demand patterns, and produce similar but differentiated products (Markusen et al, 1995).…”

Section: Residual Termmentioning

confidence: 99%

“…Third, we decided to choose Vietnam and Singapore as case studies because Vietnam and Singapore are in different stages of development. In addition, although there are a number of studies on the effects of regional trade integration on its members (Athukorala and Menon, 1997;Brada and Mendez, 1983;Clausing, 2001;Fukase and Winters, 2003;Heng and Gayathri, 2004;Tang 2003), little research has focused on comparing the effects of AFTA on Vietnam and Singapore. Another point of interest is that Vietnam's tariff rates before joining AFTA were relatively high, while those of Singapore were close to zero.…”

Section: ⅰ Introductionmentioning

confidence: 99%

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AFTA and Trade Diversion: An Empirical Study for Vietnam and Singapore

Doanh

Heo

2009

International Area Review

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This paper analyses and compares the economic effects of ASEANFree Trade Area (AFTA) on the trade flows of Vietnam and Singapore. Using the gravity model, the study shows a number of robust empirical findings. First, on the multilateral trade flows of Vietnam and Singapore, the model reveals no trade diversion following integration. Second, trade flows are not significantly affected immediately following the signing of the AFTA agreement. Third, trade distance still remains a hindrance to trade, indicating that globalization and integration have not mitigated the relevance of physical distance even though technological innovations continue to reduce transportation costs. Fourth, cultural familiarity, as a proxy for linguistic affinity and colonial relationship, continues to be an important determinant of bilateral trade flows. Finally, differences in per capita income among trading partners continue to have negative impacts on bilateral trade. Efforts to narrow the GDP gaps among members, improving social infrastructure, and continued domestic reforms are suggested as remedies for the obstacles to freer flows of trade in the region.

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Section: Residual Termsupporting

confidence: 60%

Section: Residual Termmentioning

confidence: 99%

Section: ⅰ Introductionmentioning

confidence: 99%

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AFTA and Trade Diversion: An Empirical Study for Vietnam and Singapore

Doanh

Heo

2009

International Area Review

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“…Penelitian tentang pola perdagangan dalam pembuktian empiris atas adanya teori Linder atau efek Linder pada perdagangan negara berkembang sudah banyak dilakukan (McPherson et.al., 2000), begitu juga dengan pembuktian efek Linder dalam kerjasama perdagangan negara di suatu kawasan (Tang, 2005). Dengan menggunakan model gravitasi penelitian-penelitian tersebut dapat menjelaskan pola perdagangan yang berhubungan dengan teori perdagangan internasional dengan baik.…”

Section: Pendahuluanunclassified

Analisis 19 Mitra Dagang Perdagangan Manufaktur di Indonesia: Aplikasi Model Gravitasi

Rizal¹

2018

Jour. Eco. Dev. Iss

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Fokus dari penelitian ini adalah melakukan pengujian teoti Linder pada perdagangan manufaktur dan menganalisis adanya pengaruh secara parsial maupun simultan pada variabel-variabel bebas terhadap eksor dan impor manufaktur di Indonesia dengan menggunakan 19 mitra dagang pada periode 2008-2016 dengan menggunakan model gravitasi. Tulisan ini menggunakan data panel dengan menggunakan teknik estimasi Pooled Least Square (PLS) untuk mendapatkan persamaan model ekspor dan Random Effect Model (REM) untuk persamaan impor. Hasil dari makalah ini bahwa ekspor Indonesia tidak terbukti danya efek Linder, hal ini membuktkan bahwa ekspor Indonesia tidak disebabkan adanya kesamaan selera melainan faktor harga. Sedangkan untuk impor terbukti adanya efek Linder, hal ini berarti permintaan barang Impor Indoesia berasal dari negara0negara yang memilkiki kesamaan selera dengan Indonesia. Pada variabel-variabel bebas dalam model persamaan ekspor danimpor memiliki pengaruh signifikan terhadap ekpor maupun impor Indonesia kecuali variabel nilai tukar riil pada persamaan impor.

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“…The differences in per capita GDP between China and its trading partners are added to the model to capture the Linder hypothesis, which states that bilateral trade flows tend to be larger between trading partners with a high level of similarity in per capita income (Tang 2003). A negative sign on GDPPC_DIF ijt supports the Linder hypothesis.…”

Section: Model (1) Methodologymentioning

confidence: 93%

The Formation of AFTA and Trade Diversion: Evidence from China’s Agricultural Exports

Doanh¹,

Lee²,

Heo³

2016

AISR

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This study analyzes the impacts of the formation of AFTA (ASEAN Free Trade Agreement) on China’s agricultural exports. The Hausman-Taylor analysis is applied to panel data collected from China and its 68 trading partners from 1993–2012. Our major findings areas follows. First, the discrimination in tariffs imposed by AFTA diverts trade in agricultural products from China toward AFTA’s member countries. Second, at the sectoral level, the trade diversion effects of AFTA’s formation on China’s exports are significant in the case of beverage and tobacco industries. AFTA and China need to focus more on diversifying and differentiating their farming products. To gain better access to AFTA’s market, more investment in research and development activities is recommended as a cure for Chinese farmers. Moreover, this study implies that more efforts in reducing tariff and non-tariff barriers to further liberalize trade between China and AFTA could enhance their bilateral trade flows.

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ECONOMIC INTEGRATION AMONG THE ASIA-PACIFIC ECONOMIC COOPERATION COUNTRIES: Linder Effect on Developed and Developing Countries (1985-1999)

Cited by 5 publications

References 0 publications

AFTA and Trade Diversion: An Empirical Study for Vietnam and Singapore

AFTA and Trade Diversion: An Empirical Study for Vietnam and Singapore

Analisis 19 Mitra Dagang Perdagangan Manufaktur di Indonesia: Aplikasi Model Gravitasi

The Formation of AFTA and Trade Diversion: Evidence from China’s Agricultural Exports

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