INTRA-ASEAN TRADE – GRAVITY MODEL AND SPATIAL HAUSMAN-TAYLOR APPROACH

Phung Duy Quang1, Pham Anh Tuan2, Nguyen Thi Xuan Thu3
1 Foreign Trade University
2 Vietnam Military Medical University
3 Diplomatic Academy of Vietnam

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Abstract

This paper examine determinants of intra-industry trade between Vietnam and Asean countries. By solving endogenous problem and applying Hausman-Taylor model for panel two-way dataset, we detect that export flows of Vietnam gravitate to neigboring countries and those with similar GDP. More importantly, the research indicates the existence of spatial-lag interaction.

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