Australia's global trade potential: evidence from the gravity model analysis
Article
Article Title | Australia's global trade potential: evidence from the gravity model analysis |
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ERA Journal ID | 36041 |
Article Category | Article |
Authors | |
Author | Rahman, Mohammad Mafizur |
Journal Title | International Journal of Business Research |
Journal Citation | 10 (2), pp. 242-253 |
Number of Pages | 12 |
Year | 2010 |
Place of Publication | Turlock, CA. United States |
ISSN | 1554-5466 |
1554-5571 | |
Abstract | This paper attempts to investigate trade potential for Australia using the augmented gravity models and cross section data of 50 countries. Ordinary Least Square (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. 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 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 | 350706. International business |
380110. International economics | |
380202. Econometric and statistical methods | |
Public Notes | Copyright Academy of International Business and Economics. |
Byline Affiliations | School of Accounting, Economics and Finance |
https://research.usq.edu.au/item/q00q1/australia-s-global-trade-potential-evidence-from-the-gravity-model-analysis
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