The log of gravity revisited

Martínez‐Zarzoso, Inmaculada

doi:10.1080/00036846.2011.599786

Cited by 145 publications

(65 citation statements)

References 25 publications

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“…This method is robust to heteroscedasticity and deals with bias caused by the presence of many zeros in bilateral international trade data, which are positively related to distance and negatively related to market size. Baldwin andHarrigan (2011), Fally (2015), Martínez-Zarzoso (2013), and Head and Mayer (2014) provided additional evidence in support of the PPML estimator.…”

mentioning

confidence: 73%

Deep Integration: Considering the Heterogeneity of Free Trade Agreements

Ahcar

Siroën

2017

Journal of Economic Integration

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Regional Trade Agreements have emerged in an environment of stalled multilateral trade negotiations. Although the impact of Regional Trade Agreements on international trade has been well documented, scant attention has been paid to empirical studies exploring their heterogeneity from the point of view of deep integration. We set out to determine whether deeper Regional Trade Agreements promote trade more effectively than less ambitious ones. We generate credible deep integration indicators using two recently available datasets from the World Trade Organization and the World Trade Institute. We then test the effect of depth on trade using a gravity model. We treat additive indicators as factor variables and use multiple correspondence analysis to obtain distilled indicators of deep integration to offer new insights and confirm recent deep integration findings. We find that deeper Regional Trade Agreements increase trade more than shallow agreements do, irrespective of whether the provisions they contain are within or beyond the competence of the World Trade Organization. JEL Classifications: F13, F14, F15, F53

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confidence: 73%

Deep Integration: Considering the Heterogeneity of Free Trade Agreements

Ahcar

Siroën

2017

Journal of Economic Integration

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“…However, GDP growth rate and FDI inflows and vice versa is always a main track of focus assumed by the researches in economic literature. The study of Martinez-Zarzoso (2003) concluded that high levels of growth in the host country indicates a high level of production that enhances the confidence level of investors. On the other hand, the research of Martinez-Zarzoso and Nowak-Lehmann (2004) also suggested that the higher income in home countries attracts the foreign investor interest to invest in that country.…”

Section: Gdp Growth Ratementioning

confidence: 99%

Effect of Macroeconomic Variables on the FDI inflows: The Moderating Role of Political Stability: An Evidence from Pakistan

Shahzad¹,

Al‐Swidi²

2013

ASS

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This study has examined the moderating role of Political Stability (PS) on the relationships between macroeconomic variables and the Foreign Direct Investment (FDI) inflows in Pakistan. For that purpose, this study used the authentic annual data for the period 1991 to 2011. The empirical analysis involved using the ADF test to check the stationary of the data, the EViews software and hierarchal regression using SPSS 19.0 statistical software package. The results of the study confirmed that that GDP growth rate, exports, imports and balance of payment have positive significant effects on FDI inflows in Pakistan. On the other hand, the inflation rate was not significant in determining the FDI inflows in the country. However, the GDP growth rate and Balance of Payment tends to be a significant determinant of FDI inflows when the moderating effect of the Political stability is accounted for. Based on the findings of this study, it is strongly suggested that political stability is crucial for the country's domestic and foreign investment expansion in the future course of direction.

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“…After a remarkable economic GDP growth rate of 7.57 % in 1991, economic growth rate of Pakistan decrease to 2.1% in 2000. It, however, increased to over 8.96 % both years in 2003(Zaidi, 2005Iqbal, Shaikh, &Shar, 2010). The country's GDP implied a decreasing trend during the period from 2007 to 2011.…”

Section: Introductionmentioning

confidence: 99%

“…As such,the relationship between the GDP and FDI and vice versa is always a main track of focus assumed by the researches in economic literature. The study of Martinez-Zarzoso (2003) found that a high level of income in the host country implies a high level of production, which attracts the investors' confidence to invest in the host country. Likewise, the study of Martinez-Zarzoso and Nowak-Lehmann (2004) also confirmed that the higher income in home countries enabled and induced a large amount of source of funds to be invested in overseas business.…”

Section: Gdp Growth Ratementioning

confidence: 99%

An Empirical Investigation on The Effect of Business Environment Factors on The FDI Inflows in Pakistan: The Moderating Role of Political Stability

Shahzad

Al‐Swidi

Mithani

et al. 2012

Business and Economic Research

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This study has examined the moderating role of Political Stability (PS) on the relationships between microeconomic variables, business environment variables and the Foreign Direct Investment (FDI) inflows in Pakistan.This study confined to the annual data for the period from 1991 to 2011 obtained from the authentic sources.The empirical analysis involved using the ADF test to check the stationary of the data, the EViewssoftware and hierarchal regression Business and Economic Research ISSN 2162-4860 2012 www.macrothink.org/ber 157 using the SPSS statistical software package. The statistical results of the study confirmed that that degree of openness, the Labor minimum wage and Infrastructure were significant predictors of FDI inflows. On the other hand, other variables such as GDP growth rate and the rule of law were not significant in determining the FDI inflows in Pakistan.However, the GDP growth rate tends to be a significant determinant of FDI inflows when the moderating effect of the Political stability is accounted for. These findings, thus, strongly suggested that political stability is crucial for the country's domestic and foreign investment in the future course of direction.

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The log of gravity revisited

Cited by 145 publications

References 25 publications

Deep Integration: Considering the Heterogeneity of Free Trade Agreements

Deep Integration: Considering the Heterogeneity of Free Trade Agreements

Effect of Macroeconomic Variables on the FDI inflows: The Moderating Role of Political Stability: An Evidence from Pakistan

An Empirical Investigation on The Effect of Business Environment Factors on The FDI Inflows in Pakistan: The Moderating Role of Political Stability

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