International Trade of Albania. Gravity Model

Sejdini, Abdulmenaf; Kraja, Ilirjana

doi:10.26417/ejser.v2i1.p220-228

Cited by 12 publications

(10 citation statements)

References 1 publication

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“…Haggai (2016) used the traditional augmented gravity model of international trade with new variables such as RTA and FDI stocks. Sejdini (2014) included Free Trade Agreements as an explanatory variable in his gravity model to explain the major development steps of international trade in Albania over the years. Zhou (2010) based his study on an extended gravitational model which included variables like common language to measure and analyse the determinants and export potentials of China's bilateral trade in services.…”

Section: Source(s)mentioning

confidence: 99%

Determinants of bilateral trade between China and Africa: a gravity model approach

Guan

Sheong

2020

JES

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PurposeThe main purpose of this paper is to analyse the different factors affecting Sino-African trade based on the gravity model, and propose some solutions to improve the problems.Design/methodology/approachThe paper is based on an extended gravity model, including trade agreement and recession as explanatory variables. The impacts of trade agreement and economic recession on Sino-African imports and exports are examined.FindingsThe results show that the product of GDP affects African exports to China significantly and negatively, and affects African imports from China positively. Real exchange rate affects African exports to China positively, and affects African imports from China negatively. Population affect African exports to China significantly and positively, and affect African imports from China positively. Recession have negative effects on both African imports from China and exports to China but is only significant for imports. Agreement affects African imports from China and exports to China positively. Our findings confirm the impact of economic recession, and imply that the structure of African product exported to China should be improved, and trade agreements should be reinforced.Originality/valueThis paper contributes and extends the literature on Sino-African trade by improving the traditional gravity model to include the impact of all trade agreements, and their aggregating effects on trade. The paper also seeks to assess the trade impact of economic recession through a dynamic gravity model approach for which there has been no research done to our knowledge. In this regard, it provides new understanding of the trade pattern between China and Africa, and ways in improving the Sino-African bilateral trade.

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Section: Source(s)mentioning

confidence: 99%

Determinants of bilateral trade between China and Africa: a gravity model approach

Guan

Sheong

2020

JES

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“…Studies utilizing aggregate trade flows in Albania (see Xhepa and Agolli, 2004;Asllani, 2013;Fetahu, 2014;Sejdini and Kraja, 2014) report unexploited trade potential. They suggest that main constraints of Albanian foreign trade rest on the limitations of domestic supply.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Albanian Agricultural Export: The Gravity Model Approach

Braha

Qineti

Cupák

et al. 2017

AOL

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Despite its huge agricultural potential, Albania has a sharp trade deficit with agricultural commodities. The main focus of this study is to analyse key determinants of its agricultural export. Here we employ baseline gravity model considering conventional gravity variables for Albanian export flows for the period 1996-2013. The Poisson Pseudo-Maximum Likelihood (PPML) regression is used for stepwise estimations of the augmented gravity model, including effects of Albanian Diaspora, exchange rate and price stability, trade liberalization and institutional distance. Main findings suggest that agricultural export flow increases with increasing economic size, revealing higher impact of importer's absorbing potential comparatively to Albania's productive potential. On the other hand, growth in domestic demand, resulting from increase in population, leads to reduction of agricultural export. Moreover, agricultural export flows are determined by low transportation costs (distance), adjacency proximity (sharing common border) and linguistic similarities. Presence of Albanian Diaspora residing in the importing countries facilitates export flows. Results of this study reveal that exchange rate variability has a positive impact, while bilateral institutional distance has diminishing effects on Albanian agricultural exports.

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“…Where Xij and M ik respectively denotes the share of commodity 'i' in country j's aggregate exports and country k's imports, n i=1 refers to the sum of all the n commodities i = 1, 2, 3, ..., n (Nam, 2004b). Vol 11, No 21 (2020) www.iiste.org of countries as it was revealed by Johnston et al (2014), Sejdini (2014) and Bussière and Schnatz (2009) ndings. Population of home country has also been aecting Egyptians agricultural export negatively.…”

Section: Empirical Literaturementioning

confidence: 79%

“…The eect of importing countries population as well shows a negative eect as it was indicated by Gebrehiwot and Gebru (2015). By the same talking, the eect of regional trading agreements seems not to matter in some cases like Antonucci and Manzocchi (2005) while it aects trade ows positively as (see Batra (2006), Bussière and Schnatz (2009), Simwaka (2006) and Sejdini (2014)). Apart from this, the previous studies failed to incorporate the eect of some important variables like Contact-Intensive Money (CIM) which would serve as a proxy for nancial or institutional development in the country (Thuresson, 2008) where as, this study has taken in to account of that factor.…”

Section: Empirical Literaturementioning

confidence: 86%

Evaluating Ethiopia's Agricultural Export Potential: Empirical Evidence Using Gravity Model

2020

JESD

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Given Ethiopia's export revenue is mainly from agricultural primary products, this study attempted to estimate the major determinants of Ethiopia's agricultural export over the study period (1995-2015) using a dynamic gravity model. The empirical results are in favor of the model as it is likely to produce consistent results where the lagged agricultural export has a positive and signicant eect on current agricultural export ows. Home country's population and trade openness are found to have a positive impact on agricultural export while importing country's population, distance and home country's contract-intensive money variables are found to be signicant in aecting Ethiopia's agricultural export negatively. Furthermore, European countries including Israel

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International Trade of Albania. Gravity Model

Cited by 12 publications

References 1 publication

Determinants of bilateral trade between China and Africa: a gravity model approach

Determinants of bilateral trade between China and Africa: a gravity model approach

Determinants of Albanian Agricultural Export: The Gravity Model Approach

Evaluating Ethiopia's Agricultural Export Potential: Empirical Evidence Using Gravity Model

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