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Journals / Bogazici Journal: Review of Social, Economic and Administrative Studies / 2015 / Cilt: 29 - Sayı: 2

Regionalism and ECOWAS Trade Performance: Gravity Model Approach

Bölgeselcilik ve ECOWAS Ticaret Performansı: Bir Çekim Modeli Uygulaması

Afolabi LUQMAN.0
Nor Aznin ABU BAKAR
Mukhriz Izraf AZMAN AZİZ
Pages
59–71
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The empirical results indicate that a common border and distance have had a strong effect on ECOWAS trade; also there is a negative effect of trade flow among ECOWAS members.

📌 3 Key Takeaways

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Objective & Hypothesis:This paper investigates bilateral trade flows and the level of openness across ECOWAS-15 nations for the period of 1981-2013 using Poisson pseudo maximum likelihood (PPML), fully modified ordinary least squares (FMOLS) and canonical cointegrating regression (CCR).
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Key Findings & Data:Comparing the results, the ECOWAS dummy variable was negative and significant in all of the estimation techniques.
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Conclusion & Impact:The empirical results indicate that a common border and distance have had a strong effect on ECOWAS trade; also there is a negative effect of trade flow among ECOWAS members.
🔬Design:Research Article
📍Scope:2013 Verileri
⚙️Variables:Domain Parameters

Abstract

This paper investigates bilateral trade flows and the level of openness across ECOWAS-15 nations for the period of 1981-2013 using Poisson pseudo maximum likelihood (PPML), fully modified ordinary least squares (FMOLS) and canonical cointegrating regression (CCR). Comparing the results, the ECOWAS dummy variable was negative and significant in all of the estimation techniques. Financial openness under FMOLS and CCR was negatively significant. Trade openness was found to be negatively significant only under PPML. The empirical results indicate that a common border and distance have had a strong effect on ECOWAS trade; also there is a negative effect of trade flow among ECOWAS members. Moreover, the level of financial and trade openness among members impedes the level of trade flows on integration. The estimated results highlight the underlying significance of accurately accounting for endogeneity when estimating trade policy impacts

Özet

Bu çalışmada iki yönlü ticaret ve ticari açıklık ECOWAS üyesi 15 ülkede 1982-2013 zaman aralığı için PPML FMOLS ve CCR yöntemleri kullanarak incelenmektedir. ECOWAS kukla değişkeni tüm tahmin yöntemleri için anlamlı ve negatif olarak tahmin edilmiştir. FMOLS ve CCR yöntemlerinde finansal açıklık da anlamlı ve negatif olarak bulunmuştur. Ticari açıklık ise sadece PPML yöntemiyle anlamlı bir şekilde negatif olarak tesbit edilmiştir. Ampirik bulgular ortak bir sınırın varlığı ile iki ülke arasındaki mesafenin ECOWAS üyesi ülkelerin ticaretine anlamlı etkisi olduğunu göstermiştir. Ayrıca,toplam ticaret, finansal ve ticari açıklığın ise ECOWAS üyesi ülkeler arası ticarete ket vurduğu ortaya çıkmıştır. Ancak, ticaret politikası etkileri değerlendirilirken, içselliğin varlığının da dikkate alınması gerektiği vurgulanmıştır

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Cite This Article

LUQMAN.0, A., BAKAR, N. A. A., AZİZ, M. I. A. (2015). Regionalism and ECOWAS Trade Performance: Gravity Model Approach. Bogazici Journal: Review of Social, Economic and Administrative Studies, Cilt: 29 - Sayı: 2, 59–71. https://ajindex.com/articles/143227

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