INTRA-ASEAN TRADE – GRAVITY MODEL AND SPATIAL HAUSMAN-TAYLOR APPROACH
Main Article Content
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.
Article Details
Keywords
Intra-trade, export, import, gravity model, two-dimensions fixed effect panel model, Hausman-Taylor model, Spatial Hausman - Taylor model
References
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2. Anderson J.E. and E. van Wincoop (2001), “Gravity with Gravitas: A Solution to the Border Puzzle,” NBER Working Paper 8079.
3. Baldwin, R. E. (1994 a). “Towards an Integrated Europe”, Ch. 3: Potential Trade Patterns, CEPR, pp. 234.
4. Baier and Bergstrand (2002), “On the Endogeneity of International Trade Flows and Free Trade Agreements”, American Economic Association annual meeting
5. Balassa and Bauwens, L. (I987).’Intra-industry specialization in a multi-country and multi-industry framework.’ Economic Journal, December, vol. 97.
6. Baltagi, B.H., Egger, P.H. and Kesina, M. (2016), “Firm-level productivity spillovers in China’s chemical industry: A spatial Hausman-Taylor approach” Journal of applied econometrics, 31, 214-248.
7. Bergstrand, J.H. (1985), “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence,” The Review of Economics and Statistics, 71, 143-153.
8. Bergstrand, J.H. (1989), “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade,” The Review of Economics and Statistics, 67, 474-481
9. Bergstrand, J.H. (1990), “The Heckscher-Olin-Samuelson Model, the Linder hypothesis and the Determinants of Bilateral Intra-industry Trade,” Economic Journal, 100, 1216-29
10. Breuss, F., and Egger, P. (1999), “How Reliable Are Estimations of EastWest Trade Potentials Based on Cross-Section Gravity Analyses?” Empirica, 26 (2), 81-95
11. Carrere, Céline (2006), “Revisiting the Effects of Regional Trade Agreements on Trade Flows with Proper Specification of the Gravity Model”, European Economic Review, 50 (2), 223-247.
12. Chen, I-H., and H.J. Wall (1999), “Controlling for Heterogeneity in Gravity Models of Trade,” Federal Reserve Bank of St. Louis, Working Paper 99010A.
13. Deardorff, A.V. (1995), “Determinants of Bilateral Trade: Does Gravity Work in a Neo-Classic World?” NBER Working Paper 5377
14. Do Tri Thai (2006), “A Gravity Model for Trade between Vietnam and Twenty-three European Countries”, Unpublished Doctorate Thesis, Department of Economics and Society, HögskolanDalarna, 14
15. Eli F. Heckscher&Bertil Ohlin (1933), “Heckscher-Ohlin Trade Theory”, 1st publish
16. Egger, P. (2001) “On the Problem of Endogenous Unobserved Effects of the Gravity Models,” Working Paper Austrian Institute of Economic Research, Vienna.
17. Egger, P. (2002), “A Note on the Proper Econometric Specification of the Gravity Equation” Economics Letters, 66, 25-31.
18. Federal Reserve Bank of St. Louis (2016), “Export and Import price index USA”. Accessed on 14th September. Available at: https://fred.stlouisfed.org/series/IQ
19. Frenstra and Taylor (2011), “International Economics”, 2nd edition, Worth Publisher, chapter 6, 167-198
20. Gulhot, L (2010), “Assessing the Impacts of the Main East Asia Free Trade Agreements using a Gravity Models: First Results”, Economics Bulletin, Vol. 30, No. 1, 282.
21. Havrylyshyn, 0.andCivan, E. (I983). ‘Intra-industry trade and the stage of development: a regression analysis of industrial and developing countries.’, pp. 111-40
22. Hellvin L., (1994), “Intra-Industry Trade in Asia”, International Economic Journal, 27–40.
23. Helpman, E. (1987), “Imperfect Competition and International Trade: Evidence from Fourteen Industrialized Countries”, Journal of the Japanese and International Economies, 1, 62-81.
24. Helpman E. (1998). ”The Structure of Foreign Trade”, Working Paper 6752, NBER Working Paper Series, National Bureau of Economic Research.
25. Hummels, D. and J. Levinsohn (1995), “Monopolistic Competition and International Trade: Reconsidering the Evidence,” Quarterly Journal of Economics, 110, 798-836
26. Kimura, F., and H. H. Lee (2004), “The Gravity Equation in International Trade in Services”, European Trade Study Group Conference, University of Nottingham.
27. Leamer, E. (1992), “The Interplay of the Theory and Data in the Study of International Trade” in Issues in Contemporary Economics, 2, New York University Press
28. Loertscher, R. and Wolter, F. (I980).’Determinants of intra-industry trade: among countries and across industries.’ WeltwirtschaftlichesArchiv, vol. I i6, Pp. 281-93
29. Markusen, J. and R. Wigle (1990), “Expanding the Volume of North-South Trade,” Economic Journal, 100, 1206-15.
30. Matyas, L. (1997), “Proper Econometric Specification of the Gravity Model,” The World Economy, 20, 363-68
31. Mitsuyo Ando (2006), “Fragmentation and vertical intra-industry trade in East Asia, North American Journal of Economics and Finance”, 259
32. Nguyen Anh Thu (2012), “Assessing the Impact of Vietnam’s Integration under AFTA and VJEPA on Vietnam’s Trade Flow , Gravity Model Approach”, Yokohama Journal of Sciences, 17 (2012) 2, 137
33. Reinert KA (2012), “An Introduction to International Economics: New Perspectives on the World Economy”, Cambridge University Press.
34. Thorpe, M. and Z. Zhang (2005), “Study of the Measurement and Determinants of Intra-Industry”
35. Tinbergen, J. (1962), “Shaping the World Economy. Suggestions for an International
Economic Policy” New York
36. TuThuy Anh and Dao Nguyen Thang (2008), “Factors affecting the level of concentration of the Vietnam trade with ASEAN+3”, Center for Economic Research and Policy - University of Economics, Vietnam National University, Hanoi
37. Pagoulatos, E. and Sorensen, R. (1979). ‘Two-way international trade: an econometric analysis.’ WeltwirtschaftlichesArchiv, vol. 111, pp.454-65
38. Poyhonen, P. (1963), “A Tentative Model for the Volume of Trade between Countries,” WeltwirtschaftlichesArchiv 90, 93-99.
39. Urata, S. and Okabe, M. (2007), “The Impacts of Free Trade Agreements on Trade Flows: An Application of the Gravity Model Approach”, RIETE Discussion Paper Series 07-E-052
2. Anderson J.E. and E. van Wincoop (2001), “Gravity with Gravitas: A Solution to the Border Puzzle,” NBER Working Paper 8079.
3. Baldwin, R. E. (1994 a). “Towards an Integrated Europe”, Ch. 3: Potential Trade Patterns, CEPR, pp. 234.
4. Baier and Bergstrand (2002), “On the Endogeneity of International Trade Flows and Free Trade Agreements”, American Economic Association annual meeting
5. Balassa and Bauwens, L. (I987).’Intra-industry specialization in a multi-country and multi-industry framework.’ Economic Journal, December, vol. 97.
6. Baltagi, B.H., Egger, P.H. and Kesina, M. (2016), “Firm-level productivity spillovers in China’s chemical industry: A spatial Hausman-Taylor approach” Journal of applied econometrics, 31, 214-248.
7. Bergstrand, J.H. (1985), “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence,” The Review of Economics and Statistics, 71, 143-153.
8. Bergstrand, J.H. (1989), “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade,” The Review of Economics and Statistics, 67, 474-481
9. Bergstrand, J.H. (1990), “The Heckscher-Olin-Samuelson Model, the Linder hypothesis and the Determinants of Bilateral Intra-industry Trade,” Economic Journal, 100, 1216-29
10. Breuss, F., and Egger, P. (1999), “How Reliable Are Estimations of EastWest Trade Potentials Based on Cross-Section Gravity Analyses?” Empirica, 26 (2), 81-95
11. Carrere, Céline (2006), “Revisiting the Effects of Regional Trade Agreements on Trade Flows with Proper Specification of the Gravity Model”, European Economic Review, 50 (2), 223-247.
12. Chen, I-H., and H.J. Wall (1999), “Controlling for Heterogeneity in Gravity Models of Trade,” Federal Reserve Bank of St. Louis, Working Paper 99010A.
13. Deardorff, A.V. (1995), “Determinants of Bilateral Trade: Does Gravity Work in a Neo-Classic World?” NBER Working Paper 5377
14. Do Tri Thai (2006), “A Gravity Model for Trade between Vietnam and Twenty-three European Countries”, Unpublished Doctorate Thesis, Department of Economics and Society, HögskolanDalarna, 14
15. Eli F. Heckscher&Bertil Ohlin (1933), “Heckscher-Ohlin Trade Theory”, 1st publish
16. Egger, P. (2001) “On the Problem of Endogenous Unobserved Effects of the Gravity Models,” Working Paper Austrian Institute of Economic Research, Vienna.
17. Egger, P. (2002), “A Note on the Proper Econometric Specification of the Gravity Equation” Economics Letters, 66, 25-31.
18. Federal Reserve Bank of St. Louis (2016), “Export and Import price index USA”. Accessed on 14th September. Available at: https://fred.stlouisfed.org/series/IQ
19. Frenstra and Taylor (2011), “International Economics”, 2nd edition, Worth Publisher, chapter 6, 167-198
20. Gulhot, L (2010), “Assessing the Impacts of the Main East Asia Free Trade Agreements using a Gravity Models: First Results”, Economics Bulletin, Vol. 30, No. 1, 282.
21. Havrylyshyn, 0.andCivan, E. (I983). ‘Intra-industry trade and the stage of development: a regression analysis of industrial and developing countries.’, pp. 111-40
22. Hellvin L., (1994), “Intra-Industry Trade in Asia”, International Economic Journal, 27–40.
23. Helpman, E. (1987), “Imperfect Competition and International Trade: Evidence from Fourteen Industrialized Countries”, Journal of the Japanese and International Economies, 1, 62-81.
24. Helpman E. (1998). ”The Structure of Foreign Trade”, Working Paper 6752, NBER Working Paper Series, National Bureau of Economic Research.
25. Hummels, D. and J. Levinsohn (1995), “Monopolistic Competition and International Trade: Reconsidering the Evidence,” Quarterly Journal of Economics, 110, 798-836
26. Kimura, F., and H. H. Lee (2004), “The Gravity Equation in International Trade in Services”, European Trade Study Group Conference, University of Nottingham.
27. Leamer, E. (1992), “The Interplay of the Theory and Data in the Study of International Trade” in Issues in Contemporary Economics, 2, New York University Press
28. Loertscher, R. and Wolter, F. (I980).’Determinants of intra-industry trade: among countries and across industries.’ WeltwirtschaftlichesArchiv, vol. I i6, Pp. 281-93
29. Markusen, J. and R. Wigle (1990), “Expanding the Volume of North-South Trade,” Economic Journal, 100, 1206-15.
30. Matyas, L. (1997), “Proper Econometric Specification of the Gravity Model,” The World Economy, 20, 363-68
31. Mitsuyo Ando (2006), “Fragmentation and vertical intra-industry trade in East Asia, North American Journal of Economics and Finance”, 259
32. Nguyen Anh Thu (2012), “Assessing the Impact of Vietnam’s Integration under AFTA and VJEPA on Vietnam’s Trade Flow , Gravity Model Approach”, Yokohama Journal of Sciences, 17 (2012) 2, 137
33. Reinert KA (2012), “An Introduction to International Economics: New Perspectives on the World Economy”, Cambridge University Press.
34. Thorpe, M. and Z. Zhang (2005), “Study of the Measurement and Determinants of Intra-Industry”
35. Tinbergen, J. (1962), “Shaping the World Economy. Suggestions for an International
Economic Policy” New York
36. TuThuy Anh and Dao Nguyen Thang (2008), “Factors affecting the level of concentration of the Vietnam trade with ASEAN+3”, Center for Economic Research and Policy - University of Economics, Vietnam National University, Hanoi
37. Pagoulatos, E. and Sorensen, R. (1979). ‘Two-way international trade: an econometric analysis.’ WeltwirtschaftlichesArchiv, vol. 111, pp.454-65
38. Poyhonen, P. (1963), “A Tentative Model for the Volume of Trade between Countries,” WeltwirtschaftlichesArchiv 90, 93-99.
39. Urata, S. and Okabe, M. (2007), “The Impacts of Free Trade Agreements on Trade Flows: An Application of the Gravity Model Approach”, RIETE Discussion Paper Series 07-E-052