The Gravity Model Approach: An Application on the Eco Was Trading Bloc

• Authors: Afolabi O. Luqman , Nor Aznin Abu Bakar , Azman Aziz Mukhriz Izraf
• Languages of publication: EN

Abstracts

EN

This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The methodology carried out to achieve this objective involves the use of various techniques of estimation for the gravity model (Static and dynamic). More specifically, this study aims to investigate the formational impact of regional trade integration agreements on trade flows within a group of countries using the same currencies and ECOWAS at large. The main use of regional variables into gravity models is intended to determine whether RTAs lead to trade creation, or diversion. The results show the presence of a strong relationship among the factors of both RIAs and trade flows.

Keywords

EN

RTAs; Trade creation and diversion; Panel Data model; Gravity models

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2016
• Volume: 11
• Issue: 1
• Pages: 67-75

Dates

published

2016-04-01

online

2016-07-26

Contributors

author

Afolabi O. Luqman

• School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

author

Nor Aznin Abu Bakar

• Associate Professor, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

author

Azman Aziz Mukhriz Izraf

• Senior Lecturer, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

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Identifiers

DOI

10.1515/jeb-2016-0005