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The Gravity Model Approach: An Application on the Eco Was Trading Bloc Cover

The Gravity Model Approach: An Application on the Eco Was Trading Bloc

Open Access
|Jul 2016

Abstract

This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The methodology carried out to achieve this objective involves the use of various techniques of estimation for the gravity model (Static and dynamic). More specifically, this study aims to investigate the formational impact of regional trade integration agreements on trade flows within a group of countries using the same currencies and ECOWAS at large. The main use of regional variables into gravity models is intended to determine whether RTAs lead to trade creation, or diversion. The results show the presence of a strong relationship among the factors of both RIAs and trade flows.

Language: English
Page range: 67 - 75
Published on: Jul 26, 2016
Published by: University of Sarajevo
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2016 Afolabi O. Luqman, Nor Aznin Abu Bakar, Azman Aziz Mukhriz Izraf, published by University of Sarajevo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.