Regional Borders and Trade in Asia
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This paper investigates the effect of regional borders on trade in Asia. The regional borders define the three regions of Asia: South, Southeast, and East Asia. Regional trade indicates the flows of trade within a region, whereas regional border trade means trade across regions. A gravity model is augmented with the region dummies to estimate the regional border effects that capture any and all time-invariant factors promoting or impeding regional trade. The main finding is that regional border effects are asymmetric on the three regions in Asia. There is a large and significant regional border effect on South Asia, small on Southeast Asia, and negligibly negative on East Asia. The significant and positive regional border effect in South Asia suggests that countries share intrinsic factors facilitating trade between the countries in this region. Although the regional border effect of Southeast Asia is positive, its magnitude shows little difference between its regional trade and regional border trade. Finally, the estimate on East Asia presents a completely different picture from the actual data. It implies that there exist some factors leading to active regional border trade between East Asia and other Asian regions.
Abstract
This paper investigates the effect of regional borders on trade in Asia. The regional borders define the three regions of Asia: South, Southeast, and East Asia. Regional trade indicates the flows of trade within a region, whereas regional border trade means trade across regions. A gravity model is augmented with the region dummies to estimate the regional border effects that capture any and all time-invariant factors promoting or impeding regional trade. The main finding is that regional border effects are asymmetric on the three regions in Asia. There is a large and significant regional border effect on South Asia, small on Southeast Asia, and negligibly negative on East Asia. The significant and positive regional border effect in South Asia suggests that countries share intrinsic factors facilitating trade between the countries in this region. Although the regional border effect of Southeast Asia is positive, its magnitude shows little difference between its regional trade and regional border trade. Finally, the estimate on East Asia presents a completely different picture from the actual data. It implies that there exist some factors leading to active regional border trade between East Asia and other Asian regions.
참고문헌 (31)
- Amos Jr, O. M., "Regional Economic Integration and the Formation of Global Trading Blocs: A Historical Analysis of the 1980s", Modern Economy, 3(2), pp.210~217 (2012)
- Anderson, James A., "Gravity with Gravitas: A Solution to the Border Puzzle", American Economic Review, 93(1), pp.170~192 (2003)
- India’s Global Trade Potential: The Gravity Model Approach, "Batra, Amta", Indian Council for Research on International Economic Relations, ~, pp.Working Paper, No. 151 (2004)
- B. M. Russett, "International Regions and the International System: A Study in Political Ecology" (1967), Rand McNally & Company
- Eicher, Theo, "Trade Creation and Diversion Revisited: Accounting for Model Uncertainty and Natural Trading Partners Effects", Journal of Applied Econometrics, 27(2), pp.296~321 (2012)
- Elliott, Robert Jr., "AFTA and the Asian crisis: help or hindrance to ASEAN intra-regional trade?", Asian Economic Journal, 18(1), pp.1~23 (2004)
- Endoh, Mashhiro, "The transition of postwar Asia-Pacific Trade Relations", Journal of Asian Economics, 10(4), pp.571~589 (1999)
- Frankel, Jeffrey A., "The Structure of the Japanese Economy: Changes on the Domestic and International Fronts", pp.387~415 (1994), Macmillan Press
- Frankel, Jeffrey A., "Regional Trading Blocs in the World Economic System" (1997), Institute for International Economics, Peterson Institute
- Geographical Association, "Classifications of Regions of the World: Report of A Committee of the Geographical Association", Geography, 22(4), pp.253~282 (1937)
- Gul, Nazia, "The Trade Potential of Pakistan: An Application of the Gravity Model", The Lahore Journal of Economics, 16(1), pp.23~62 (2011)
- Hassan, Kabir M., "Is SAARC a viable economic block? Evidence from gravity model", Journal of Asian Economics, 12(2), pp.263~290 (2001)
- Hirantha, S. W., "From SAPTA to SAFTA: Gravity Analysis of South Asian Free Trade", ~ (2004)
- Krishna, Pravin, "Are Regional Trading Partners ‘Natural’?", Journal of Political Economy, 111(1), pp.202~226 (2003)
- McCallum, John, "National Borders Matter: Canada-US Regional Trade Patterns", American Economic Review, 85(3), pp.615~623 (1995)
- Magee, Christopher S. P., "New Measures of Trade Creation and Trade Diversion", Journal of International Economics, 75(2), pp.349~362 (2008)
- Panagariya, A., "Preferential Trading and the Myth of Natural Trading Partners", Japan and the World Economy, 9(4), pp.471~489 (1997)
- Trade Potential in SAFTA: An Application of Augmented Gravity Model, "Rahman, Mustafizur", Centre for Policy Dialogue, ~, pp.Centre for Policy Dialogue Paper, No. 61 (2006)
- Ramasamy, B., "Trade diversion in an ASEAN free trade area", ASEAN Economic Bulletin, 12, pp.10~17 (1995)
- Siah, Kim-Lan, "AFTA and the Intra-Trade Patterns among ASEAN-5 Economies: Trade-Enhancing or Trade-Inhibiting?", International Journal of Economics and Finance, 1(1), pp.117~126 (2009)
- Thornton, John, "Regional Bias and Intra-Regional Trade in Southeast Asia", Applied Economics Letters, 9(4), pp.205~208 (2002)
- "World trade volume (exports and imports) in Section 2: WTO Statistical Database"[URL]
- "Region classifications: the UN geographical classification"[URL]
- "Trade flow data in Sections 3 and 4: The U.N. Comtrade through The World Integrated Trade Solution"[URL]
- "Countries GDP data: the World Bank Data Open Data"[URL]
- "Data for gravity variables: CEPII"[URL]