Strategic Economic Partnerships, Exchange Rate Policy and Agricultural Trade: A  Gravity Model Analysis of China’s  Agricultural Trade Flows

Zhenjiang,

doi:10.4236/jss.2016.45008

Cited by 11 publications

(6 citation statements)

References 10 publications

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“…There are greater business opportunities in China's agricultural export trade, but the difficulty of export is also increasing. Finally, according to the research results, it puts forward countermeasures and suggestions to improve the competitiveness and trade potential of China's agricultural exports to the BRICS countries [6][7][8] [9]. Qu Yi (2017), analyzed "Agricultural Trade Cost Research [10].…”

Section: Literature Review 21 China's Agricultural Product Tradementioning

confidence: 99%

Analysis of Factors that Influence Agricultural Trade between China and Mongolia

Zagdaakhuu¹

2021

jefms

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Mongolia-China trade turnover has increased 250 times in 28 years. The two countries formally established diplomatic relations on October 16, 1949, which has now expanded to the level of a comprehensive strategic partnership. This paper seeks to study and analyse the factors that influence agricultural product trade between China and Mongolia and give recommendations which can create new possibilities for the expansion of bilateral agricultural trade that were established in 2014. We use Comparative analysis and apply factor regression analysis methods of econometrics and Revealed Comparative Advantage Index (RCA index) of the factors affecting the trade of agricultural products between China and Mongolia were analyzed. Our results show that the development of China-Mongolia agricultural trade is faster than the overall development of China’s agricultural product trade, the average annual growth rate from 2001 to 2018 of China-Mongolia agricultural trade is 17.1%, which is 4.3% higher than the average annual growth rate of China’s total agricultural trade, average annual growth rate of agricultural 26 import from Mongolia is 5.7% higher than the overall increase of China's agricultural imports, average annual increase of agricultural exports to Mongolia is 2.2% higher than the overall increase of China's agricultural exports, agricultural product trade is highly complementary, RCA index shows that China's livestock products industry used have a 28 very strong comparative advantage in live animals, China's live animals competitive comparative advantage has continued to decrease and the index result has fallen below 1 and Chinese pay more attention to the quality and safety of agricultural products. We make policy recommendations for promoting the development of agricultural trade between China and Mongolia and provide reference for the study of agricultural trade between China and Mongolia.

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Section: Literature Review 21 China's Agricultural Product Tradementioning

confidence: 99%

Analysis of Factors that Influence Agricultural Trade between China and Mongolia

Zagdaakhuu¹

2021

jefms

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“…There are the same basic findings in this model's different implementations: distances and boundaries are important determinants to describe the trade flow. For example, the researchers used the gravity model to determine Chinese agricultural foreign trade with its major partners (Muganyi & Chen, 2016). The researcher used the gravity model to examine the Trade Potential of Senegal and Morocco (Niang, 2016).…”

Section: Literature Review About Using the Gravity Modelmentioning

confidence: 99%

An Empirical Study of Bilateral Trade in Egypt: Gravity Model Approach (2000-2018)

Sohail¹,

Sohail²,

Wang³

et al. 2021

OJBM

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The foreign trade market is one of the most effective engines of economic growth in Egypt. Given its importance to the Egyptian economy, the factors influencing export flows between Egypt to its main trading partners need to be studied. The gravity model and panel data method is an essential and common approach for analyzing bilateral trade flows. It has proved to be a valuable method for analyzing a country's trade potential and bilateral trade. This study applied the gravity model with geographical and financial variables. Moreover, it offers a new empirical perspective to indicate that these variables have analytical power to explain several factors that influence the cross-country trade flows; this research explores the relationship of Egyptian exports to 36 global trading partners across annual data covering a period from 2000 to 2018. In its random effect model of the panel data, the gravity model results showed that the main factors influencing the Egyptian bilateral trade are Egypt's gross domestic product, importer's gross domestic product, the border factor, and the distance between Egypt to the main trading partners. Some variables have a positive coefficient, like population, trade openness rate, and regional trade agreements, but they are insignificant for the Egyptian bilateral trade. The language factor is negative and insignificant to Egypt's trade. These findings will enable Egypt's government, policymakers, and traders to make suitable decisions to develop the influential role of Egypt's international trade.

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“…Evidence from a series of published papers has shown that gravity model can be derived from both Ricardian and HO models. Adding to that, Anderson (1979) as well specified that the gravity framework is consistent with a world trade model in which products are differentiated by the country of origin (Muganyi and Chen, 2016). Though research on gravity model theoretical bases is still underway, its predictive power in international trade analysis has proved to be important.…”

Section: The Gravity Model Historical Development and Its Specificationmentioning

confidence: 99%

“…It as well omits the impact of time invariant characteristics as aforesaid, this is essentially to precisely evaluate the net impact of predictor variables on the principle or outcome variable. The principal challenge of FEM is that time invariant variables cannot be estimated directly in this model (Muganyi and Chen, 2016). Hence variables such as culture and distance between countries will not be supported in the FEM.…”

Section: Estimation Proceduresmentioning

confidence: 99%

The Impact of Dollarization Policy on Zimbabwe Exports: A Gravity Model Approach

Tomu

Mutodi²,

Chuchu

et al. 2021

IJEFI

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This paper investigates the impact of dollarization policy on Zimbabwe exports over a period of 20 years. The study used panel data for 50 Zimbabwe potential historical trading partners. Random effects model (REM) was applied to estimate the gravity model equation. Panel feasible generalized least squares (FGLS) regression technique corrected for heteroskedasticity and contemporaneous correlation across panels was applied to probe factors that drive Zimbabwe export flows. The results provide insights on the impact of dollarization policy, GDP, bilateral exchange rate, SADC membership status and population on Zimbabwe exports. If monetary authorities involuntarily re-dollarize the economy owing to monetary autonomy erosion, emphasis should be directed towards internal devaluation which could be attained by measures intended to exert downward pressure on domestic costs, wages and prices to recuperate export competitiveness. Further, government has to create an environment that encourage foreign direct investment inflows to ease liquidity challenges probable to be experienced under dollarization regime. Nevertheless, macroeconomic fundamentals ought to be addressed with action to spur economic growth. Sufficient resources should be channelled towards increasing the country's productive capacity, and this can enhance country's ability to supply export products to the international market, and curb import growth.

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Strategic Economic Partnerships, Exchange Rate Policy and Agricultural Trade: A Gravity Model Analysis of China’s Agricultural Trade Flows

Cited by 11 publications

References 10 publications

Analysis of Factors that Influence Agricultural Trade between China and Mongolia

Analysis of Factors that Influence Agricultural Trade between China and Mongolia

An Empirical Study of Bilateral Trade in Egypt: Gravity Model Approach (2000-2018)

The Impact of Dollarization Policy on Zimbabwe Exports: A Gravity Model Approach

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