Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions

Kucharcukova, Oxana Babecka; Babecký, Jan; Raiser, Martin

doi:10.1007/s11079-010-9187-8

Cited by 17 publications

(6 citation statements)

References 63 publications

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“…Almost the same results were given by Kucharčuková, Babecký and Raiser (2010), who concluded that the poor quality of institutions in many Western Balkan countries is the major barrier to greater trade integration of this region. According to Xhelili-Krasniqi and Mustafa-Topxhiu (2017), Western Balkan countries trade more with European Union than between themselves.…”

Section: Theoretical Backgroundsupporting

confidence: 66%

Trade Barriers and Exports between Western Balkan Countries

Jusufi

Bellaqa

2019

Naše Gospodarstvo/Our Economy

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The aim of the paper is to identify the trade barriers imposed by the Western Balkan countries. All barriers, whether tariff or non-tariff, undoubtedly impede the normal development of trade between countries. Therefore, the paper examines merchandise trade patterns in the Western Balkan region and tries to identify the main drivers of and obstacles to intra-regional trade. Intra-regional trade comes second in importance, after trade with the European Union (EU); it underperformed and was in decline in the last few years. In the region with political challenges as the Western Balkans, non-tariff barriers significantly reduce trade exchanges between the countries in this region. Currently, the trade and political disputes (tax rate 100%) between Kosovo and Serbia showed that the imposed tariffs in trade created a political reaction between the countries, interrupting the dialogue between these countries. The originality and value of the paper are reflected in its dealing with such topics as trade barriers, genesis in ethnic and political disputes that are prominent in the Balkan region.

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Section: Theoretical Backgroundsupporting

confidence: 66%

Trade Barriers and Exports between Western Balkan Countries

Jusufi

Bellaqa

2019

Naše Gospodarstvo/Our Economy

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“…In addition, a negative relationship has been revealed with the commercial sales of Kütahya between provinces and the provinces distances. In another similar study (Kucharčuková et al, 2010), it was found that the distance to the markets is less important than the quality of the institutions on the trade volume.…”

Section: Discussionmentioning

confidence: 88%

“…It was determined that China benefited from the trade agreement with the Association of Southeast Asian Nations (ASEAN) in terms of export potential and at the same time, an agreement to be made with South and East Asian countries could have great export potential. Kucharčuková et al (2010) performed a panel data analysis using the Poisson and Tobit estimation techniques with an 8-year (1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004) data set of 82 countries. In the study using the Gravity Model, the reason why Southeast Europe (SEE) and Commonwealth of Independent States (CIS) countries trade significantly less with the world economy than the later participating Central and Eastern European (CEE) Countries was investigated.…”

Section: Literature Reviewmentioning

confidence: 99%

Investigation on Trade of Çorum With Surrounding Provinces by Gravity Model

Yücel

2021

Hitit Sosyal Bilimler Dergisi

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In this study, the trade relationship of Çorum province with the surrounding provinces was examined by using Newton's Gravity Model. Newton's Gravity Model is used to model the gravitational forces of planets and their physical states in space. It is possible to adapt this model to inter-provincial or inter-country trade relations. The analysis results show that the Gravity Model has a strong representation property in explaining inter-provincial trade of Çorum where has a great potential to further develop the commercial relations it has with its neighbours. In addition, it was found that Nevşehir and Karabük are, two neighbours but close cities to Çorum, remained below the potential and the sales volume of Çorum to these provinces was low.

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“…The WGI measure institutional governance using 6 dimensions, namely, Voice and Accountability, Political Stability and Absence of Violence / Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. Studies using these data include Babecká Kucharčuková et al (2012); Gani and Prasad (2006); Iwanow and Kirkpatrick (2007); Méon and Sekkat (2008); and Soeng and Cuyvers (2018). Empirical studies utilising these data are among the most widely used, although with different variations in the use of the index between studies where some use only a few indexes.…”

Section: Graph 2 Six Dimensions Of Institutions Quality In Indonesia Source: Worldwide Governance Indicatorsmentioning

confidence: 99%

Quality of Indonesia’s Domestic Institutions and Export Performance in the Era of Global Value Chains

Bustaman

Indiastuti

Budiono

et al. 2021

Preprint

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The focus of this research is on analysing the effects of institutional quality and trade agreements on Indonesia bilateral trade in four commodity groups in the era of global value chains (GVSs). Employing a panel data gravity model of Indonesian export of four commodities to Indonesia’s 18 trading partners from 2000 to 2018, and estimating the Feasible Generalized Least Squares (FGLS) and the Poisson Pseudo Maximum Likelihood Method (PPML), the results of this study find that institutional quality plays a different role in explaining Indonesia’s export performance of those four commodities, despite the fact that institutions contribute positively. Regarding raw material and capital goods export, trading partner institutions are significant factors for Indonesian export of the two commodities. On two commodities that are relevant to Indonesia participation in the global value chain, exported intermediates and consumer goods, we find that although both domestic institutions and trading partner institutions are significant to Indonesian export, but we argue that domestic institutions contribute more. This study also reveals that through tariff reductions, Indonesian trade agreements are significant regarding export of intermediate and consumer goods, but less so for raw material and capital goods.

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Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions

Cited by 17 publications

References 63 publications

Trade Barriers and Exports between Western Balkan Countries

Trade Barriers and Exports between Western Balkan Countries

Investigation on Trade of Çorum With Surrounding Provinces by Gravity Model

Quality of Indonesia’s Domestic Institutions and Export Performance in the Era of Global Value Chains

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