• Asia-Pacific Journal of Business
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• v.2 no.1
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• pp.49-73
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• 2011

With the market evaluation of economic globalization exchanges between different cultures, cultural trade has been developing at an accelerated speed, and also playing an important role in East Asian intra-regional trade. In this research the author used gravity trade model to explain the causal relationship between dependent variable trade flows and several independent variables applying with five categories cultural goods which classified in HS codes. Firstly for cultural heritage trade flow, the results indicated that economic masses of bilateral countries have no significant influences on it; GDP per capita of host country and adjacency factor with partner country have significant negative influences on it; Internet coverage ratio has improved cultural heritages exchanges in East Asian regions. Secondly for printed matter cultural goods trade flow, the distance factor has significant negative influence but common language has significant positive influence on it. Thirdly for recorded media cultural goods, only economic masses and GDP per capita of bilateral countries can improved their trade flows. Fourthly for visual arts cultural products trade flows, almost all variables we tested have significant influences on it. Fifthly for cinema photography cultural goods trade flow, the influenced factor are same with cultural heritage products except they have strong positive interaction relationship with economic masses and common language. At last, the paper figured out some important and potential sectors for cultural goods trade in East Asia and gave some suggestions to government and cultural goods product enterprises.

• East Asian Economic Review
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• v.25 no.1
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• pp.33-71
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• 2021

Many different approaches and databases have been developed for the evaluation of non-tariff measures (NTMs) and free trade agreements (FTAs). This paper is devoted to the EU-South Korea agreement, which is the first 'second-generation' FTA of the EU, addressing a wide array of non-tariff policies. We review the evolution of NTM types applicable to the EU-South Korea trade relationship and the role of NTMs in ex-ante and ex-post analyses of the agreement. Subsequently a structural gravity model is employed to assess the value added of information on different aspects of FTAs and types of NTMs by evaluating their ability to predict the trade effects of the EU-South Korea FTA. Our results show that, when accounting for information on the components common in modern deep trade agreements, no additional trade effect is attributable to the EU-South Korea FTA. The evolution of NTMs differs considerably across indicators used, but trade predictions are hardly affected. Most specifications point towards a negative effect of bilateral differences in the number of technical barriers to trade (TBT) applied and sanitary and phytosanitary measures (SPS) against which trading partners issued complaints at the WTO.

• Journal of Distribution Science
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• v.10 no.12
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• pp.13-17
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• 2012

Purpose - The Asia-Pacific Economic Cooperation (APEC) forum has evolved and is actively facilitating free and open trade. It is debated whether APEC has effectively reduced trade barriers in a preferential manner to encourage liberalized trade and whether increased trade between member countries has reduced trade with nonmember countries. Research designs, data, methodology -This paper empirically tests whether APEC creates or diverts trade, using an extended gravity model with tariff rates, exchange rates, and dummy variables to analyze how APEC affects intra-trade between members.The model utilizes the annual panel data between 1990 and 2007 of 16 selected APEC members and nonmembers. Results - Results reveal the changing role of APEC only between 2002 and 2007 has it created trade, fostering increased trade among trading partners and between members and nonmembers. Conclusion - APEC can be expected to demonstrate a stronger trade creating effect once its advanced and developing members complete tariff reductions by 2010 and 2020, respectively.

• East Asian Economic Review
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• v.22 no.3
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• pp.275-306
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• 2018

Amid a general rise in protectionism and a trade war between the world's two largest economies, this paper analyzes changes in gains from trade for the world over a decade marked by rapid global economic integration preceding the global financial crisis of 2007-08. It employs state-of-the-art quantitative trade models based on the gravity equation to estimate autarky gains from trade, as well as a recently introduced ANOVA-type structural estimation of the gravity equation to obtain trade costs free of residual trade cost bias. Between 1995 and 2006, the cost of moving to autarky increased by about 45% on average. A decomposition exercise suggests most of the increase in autarky gains from trade on average was due to increases in import shares in total spending, with a limited role for reallocations of spending across sectors with varied trade elasticities. Changes in trade costs between 1995 and 2006 are found to have increased autarky gains from trade, as measured in 2006, by up to 100%.

• Journal of Distribution Science
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• v.22 no.8
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• pp.37-53
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• 2024

Purpose: Global warming is increasingly aggravated by environmental degradation, a challenge that can be mitigated through strategic logistic policies. This study introduces the dynamics of green trade in environmental goods for the Organisation of Islamic Cooperation (OIC) nations. It is a region known for its high environmental degradation, political risk and instability. This study examines how technological innovation and political factors influence the geographic distribution of green trade among OIC nations from 1994 to 2021 using the structural gravity model. The COVID-19 pandemic further emphasised the need for resilient and eco-friendly approaches. Research design, data and methodology: The main objective of the study is to analyse the impact of technological innovation along with scrutinising political determinants of green trade in the OIC region from 1994 to 2021 using the structural gravity model. Results: The results reveal geographic proximity, RTA, and innovation significantly boost green trade. Similarly, OIC's green trade performance has been impeded by high political risk and instability. Conclusions: The research recommends fostering political stability, and conducting further research using longitudinal studies and machine learning to strengthen the understanding of innovation and green trade in the OIC. This will inform policies for sustainable economic growth through green trade.

• Korea Trade Review
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• v.47 no.4
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• pp.1-14
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• 2022

This study examines the impact of trade facilitation on China's trade for the period 2010-2017 using a gravity model with a measurement of APEC trade facilitation through principal component analysis. The empirical results confirmed that trade facilitation was a key factor to have a positive effect on Chinese exports and that the higher the level of trade facilitation in APEC countries, the more positive the increase in exports and quantities with China. Further, the size of the economy, the total population, and the border between the trading partner had a positive effect on Chinese trade volume. To promote economic growth through increase in trade volume, countries should actively improve trade facilitation and participate in global trade facilitation reform through continuous cooperation with trading partners.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.72
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• pp.139-160
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• 2016

Using the gravity model, this paper analyzes empirically how the world trade in goods is affected by regional trade agreements(RTAs) which have been spreading rapidly since the mid-1990s. This paper attempt to do the panel data analysis about 174 countries during the period of 1994-2008. These panel data include 157 RTAs. It is meaningful that this paper uses comprehensive data to analyze the net effect of regional trade agreements on the global trade volume. This provides a clue as to the answer to the stumbling block debate raised early in the regional trade agreement. Also, confirming how the participation of the WTO affected the trade volume among the member countries, the WTO-related dummy variables are additionally introduced to this gravity model. And as far as we know, the state system-related variables is first considered in this model. This variable reflects the social and cultural environments of countries as the proxy variable representing the sociocultural homogeneity. In all regressions, joining to the WTO and consistency of the state system have a positive effect on increasing the trade volumes between countries. According to the analysis of RTA trade effects, RTAs, on average, increase the volume of trade within the RTA region by 27%~37%, and decrease the volume of trade between the regional and the non-regional nation by 1.2%~3.4%.Therefore, the net effect of regional trade agreements on the promotion of global welfare is positive. For robustness check, we also introduce the interaction term of the dummy variable which reflects the RTA tightening and the continuous variable which reflects the distance effect. As a result, the RTAs alleviate the trade-decreasing effect which is caused by the distance between the countries.

• Korea Trade Review
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• v.46 no.3
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• pp.1-24
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• 2021

The Belt and Road Initiative (BRI) is designed to intensify bilateral trade between China and the BRI countries through the improvement of transportation connections. However, little research has empirically investigated the impacts of this policies on the trade patterns. This paper attempts to evaluate the impacts of BRI on the trade patterns of Tanzania. Our study extends the original gravity model of bilateral trade by adding GDP per capita, population and proximity as the explanatory variables. According to our research, we observed that the BRI significantly impacted the Tanzania's trade patterns, as it led to the increase of bilateral trade flow between Tanzania and China more importantly between Tanzania and its adjacent countries. It indicates that the Belt and Road Initiative (BRI) has boosted Tanzania's trade exclusively, hence the Tanzania's export sector earns greater trading potential with the adjacent countries.

• The Journal of Fisheries Business Administration
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• v.43 no.1
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• pp.19-34
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• 2012

The purpose of the paper is to find out the trade patten and characteristics of Korea's fisheries products by figuring out the factors of affecting the volume of the export of Korean frozen fisheries products based on the data of frozen fisheries (HS0303), which make up of the large volume of Korea's fisheries export using gravity model. The paper has performed regression analysis through using 624 panel data and the statistical program, STATA 12.0. In this study, we can get two results as follows: First, the total import volume of fisheries and transportation distance of trade partners have an influence on the Korea's trade of frozen fisheries products. The time and fare of transportation have also an influence on the Korea's trade of frozen fisheries products. Second, Korea's trade of frozen fisheries products is also affected by the exchange rate of currencies and settlement of FTA which could be shown as important factors in the estimation of export function of general products.

• Journal of Korea Port Economic Association
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• v.19 no.1
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• pp.23-41
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• 2003

The purpose of this paper is to analyze the gravitation of ship's cargo tons of arriving and leaving port of Busan based on the gravity model empirically and experimentally and to suggest possible ways to expand the trade quantities(cargo tons) by identifying important factors determining the port of Busan's bilateral trade flows with foreign countries by using the 1995, and 2001 data. In this paper, new independent variables, such as land, populations, and the APEC and ASEAN memberships, and new dependent variable, such as the ship's cargo tons of arrival and leaving port of Busan were used for expanding the previous studies. Empirical analysis found that the port of Busan tends to trade more with countries in close proximity and the large size of economies. The fact that the port of Busan's trades more with APEC countries than with non-APEC countries is a clear empirical evidence of the growing importance of the regional trade agreement and strategic alliance with the ports of these member countries. The main policy implication based on the findings of this study is that GDP, distance, adjacency, and APEC membership which were the affecting variables to the bilateral trade with the port of Busan should be closely investigated for enhancing the trade quantities with those foreign countries.