Exploring Australia's global trade potential: a gravity approach with panel data
Article
Article Title | Exploring Australia's global trade potential: a gravity approach with panel data |
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ERA Journal ID | 211566 |
40538 | |
Article Category | Article |
Authors | |
Author | Rahman, Mohammad Mafizur |
Journal Title | Academy of Taiwan Business Management Review |
Academy of Taiwan Business Management Revie | |
Journal Citation | 8 (1), pp. 35-47 |
Number of Pages | 13 |
Year | 2012 |
Publisher | Taiwan Institute of Business Administration |
Place of Publication | Taichung City, Taiwan |
ISSN | 1813-0534 |
Web Address (URL) | http://www.jtiba.com |
Abstract | This paper investigates Australia's global trade potential taking data of Australia and its 57 trading partners for the period of 1972-2006. Gravity model approach and panel data estimation techniques have been used. The paper first estimates the augmented gravity models of trade. The estimated coefficients are then used to predict Australia's trade potential. Our results reveal that Australia's bilateral trade is affected positively by income, openness of trading partners, common language and free trade agreement, and negatively by the per capita income differential and distance between Australia and trading partners. The results indicate Australia has notable trade potential with Mexico, Argentina, Uruguay, Austria, Peru, India, the Philippines, Brazil, Chile, the USA, New Zealand, Greece, Japan, Turkey, Nepal, Kenya, Spain, Hungary, Brunei, Hong Kong, South Africa, Pakistan and Canada. |
Keywords | gravity model; panel data; Australia; trade potential |
ANZSRC Field of Research 2020 | 350706. International business |
380204. Panel data analysis | |
380110. International economics | |
Byline Affiliations | School of Accounting, Economics and Finance |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q14v3/exploring-australia-s-global-trade-potential-a-gravity-approach-with-panel-data
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