Australia's global trade potential: evidence from the gravity model analysis
Paper
Paper/Presentation Title | Australia's global trade potential: evidence from the gravity model analysis |
---|---|
Presentation Type | Paper |
Authors | |
Author | Rahman, Mohammad Mafizur |
Editors | Gupta, Atul |
Journal or Proceedings Title | Proceedings of the 2009 Oxford Business and Economics Conference (OBEC 2009) |
Number of Pages | 41 |
Year | 2009 |
Place of Publication | Oxford, United Kingdom |
ISBN | 9780974211419 |
Web Address (URL) of Paper | http://www.facultyforum.com/obec/ |
Conference/Event | 2009 Oxford Business and Economics Conference |
Oxford Business and Economics Conference (OBEC) | |
Event Details | 2009 Oxford Business and Economics Conference Event Date 24 to end of 26 Jun 2009 Event Location Oxford, United Kingdom |
Event Details | Oxford Business and Economics Conference (OBEC) OBEC |
Abstract | This paper attempts to investigate trade potential for Australia using the augmented gravity models and cross section data of 50 countries. OLS has been used as an estimation technique for 2001 and 2005 data. The estimated coefficients from the gravity models are then used to predict Australia's trade potential. Theoretical justification for using the gravity model to analyse bilateral trade flows is also re-affirmed. Our results reveal that Australia's bilateral trade is affected positively by economic size, per capita GDP, openness and common language, and negatively by the distance between the trading partners. The estimated results also show that Australia has tremendous trade potential with Singapore, Argentina, the Russian Federation, Portugal, Greece, Chile, the Philippines, Norway, Brazil and Bangladesh. |
Keywords | gravity model; cross-section data; Australia; trade potential |
ANZSRC Field of Research 2020 | 380110. International economics |
380201. Cross-sectional analysis | |
380112. Macroeconomics (incl. monetary and fiscal theory) | |
Public Notes | No evidence of copyright restrictions on web site. |
Byline Affiliations | School of Accounting, Economics and Finance |
https://research.usq.edu.au/item/9z215/australia-s-global-trade-potential-evidence-from-the-gravity-model-analysis
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