The Impact of International Organizations on Chinese Trade as the Determiner of Trade: The Gravity Model Approach

Emi̇könel, Murat

doi:10.1080/10971475.2021.1892920

Cited by 18 publications

(10 citation statements)

References 37 publications

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“…Conversely, the closer the distance between trading partners, the more trade flows. Thus, this finding is in line with the classical results of the gravity model of Linnemann (1966), Emikönel (2021), Esteve‐Pérez et al (2020) and Liu et al (2020).…”

Section: Resultssupporting

confidence: 91%

“…As expected, the African oil/minerals exporting countries under study tend to export more to China because of the natural resources' dominant in the region. The significantly positive results align with the expected results of the gravity model and the findings of Anwar andNguyen (2011), De Grauwe et al (2012), Emikönel (2021) and Biggeri and Sanfilippo (2009).…”

Section: Notessupporting

confidence: 90%

“…This country-specific model answers the total trade volume of all the trading partners. Thus, following augmented gravity models of Anwar and Nguyen (2011), De Grauwe et al (2012) and Emikönel (2021), the augmented GM in the log-linear form can be written as: …”

Section: Methodsmentioning

confidence: 99%

“…Also, the effect of binary variable landlocked countries ( β 14 LLOCK ijt ) was examined to determine whether they impede trade or otherwise. The transportation cost or trade cost ( β 5 ln Distw ijt ) is measured by distance (Edwards and Jenkins, 2014; Emikönel, 2021; Foad, 2011; Izotov and Tochkov, 2021; Johnston, Morgan and Wang, 2015; Liu et al , 2020). For political stability and corruption ( β 11 POLSTAB ijt and β 12 Corrpt ijt ), higher values indicate good institution and positive or negative behaviour of the variables when examined and will determine the effect on China–Africa trade.…”

Section: Methodsmentioning

confidence: 99%

“…Despite this assertion on the role of institutions in China–Africa trade integration, research in manufacturing occupies a significant number of the existing literature (Edwards and Jenkins, 2014; Murtala et al , 2017; He, 2013; Johnston et al , 2015; Hu and Van Marrewijk, 2013; He, 2020). Although the few studies related to natural resources and the role of institutional structures suffer from methodological shortcomings, the dearth of appropriate trade data for the analysis and the variables included in their models do not capture the actual sectoral trade flows of oil/minerals (Biggeri and Sanfilippo, 2009; De Grauwe et al , 2012; Emikönel, 2021; Foad, 2011). In addition, these studies focused either on entire Africa, Sub-Saharan Africa or Africa with developed and other developing countries in the world.…”

Section: Introductionmentioning

confidence: 99%

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China’s bilateral trade in Africa: is institutional structure a determinant?

Kafilah

Rasiah

2021

CMS

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Purpose The purpose of this paper is to empirically examine the institutional structures and other predictors that determine bilateral trade between Africa and China from 1995 to 2017. Design/methodology/approach In line with the gravity model of trade, institutional, geographical and socio-economic determinants of China’s bilateral trade with 18 African oil/minerals exporting countries are examined by deploying Poisson pseudo-maximum likelihood and dynamic bias-corrected least squares dummy variable econometric techniques. Findings The results indicate that China’s oil/minerals imports from Africa are higher than imports of manufacturing and agricultural goods, and institutional structures indicate that a weak politically stable region with less control of corruption has a discernible effect on trade. Research limitations/implications Further insight can be gained if the type of manufactured goods being exported to China is examined; this is necessary given that China crowds out Africa’s manufactured goods. Therefore, this study recommends the need for Africa to continually strengthen its institutional structures to stimulate trade from other regions. Originality/value This study examines the quality of the institutional structures (political stability and corruption) in African oil/minerals exporting countries, considering that China has been alleged for capitalising on Africa’s weak institutional structures to trade with the resource-endowed region. For the first time, the UN COMTRADE HS product-country-partner-year trade data is used to examine on bilateral sector trade China–Africa links rather than proxies used in the studies of Biggeri and Sanfilippo (2009), De Grauwe et al. (2012) and Foad (2011) that did not capture the real trade value.

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Section: Resultssupporting

confidence: 91%