We carry out an indirect inference test of two versions of a computable general equilibrium (CGE) model of world trade. One of these, the 'classical' model,is well-known as the Heckscher-Ohlin-Samuelson model of world trade, in which countries trade homogeneous products in world markets and...

We examine the empirical evidence bearing on whether UK trade is governed by a Classical model or by a Gravity model, using annual data from 1965 to 2015 and the method of Indirect Inference which has very large power in this application. The Gravity model here differs from the Classical model...

With a decrease in formal trade barriers, trade facilitation has come into prominence as a policy tool for promoting trade. In this paper, we use a gravity model to examine the relationship between bilateral trade flows and trade facilitation. We also estimate the gains in trade derived from...

This study estimates the trade potential for India using an augmented Gravity model and then attempts to determine the importance of trade remedies. Based on the panel data, this Gravity model is the first-ever attempt to estimate India’s trade potential in the pre- and post- global economic...

The present study attempts a quantitative assessment of the impact of recently signed ASEAN-India FTA (AIFTA) for selected plantation commodities (coffee, tea and pepper) in India. We use partial equilibrium modeling approach (SMART model and gravity model) to simulate the likely import increase...

The aim of the present work is to test empirically the feasibility of the broad expectations regarding the effects of ENP on the EU-MED economic partnership. More specifically, it presents firstly a gravity analysis of the patterns of trade in the EU-MED area to test the actual dimension of...

This paper analysed the determinants of South African exports of raw hides and skins (other than fur skins) and leather (H41) using annual data covering the period 1997 to 2004 for 32 main trading partners. The results show that importer’s GDP, South Africa’s GDP, importer’s population,...

The present study attempts a quantitative assessment of the impact of recently signed ASEAN-India FTA (AIFTA) for selected plantation commodities (coffee, tea and pepper) in India. We use partial equilibrium modeling approach (SMART model and gravity model) to simulate the likely import increase...

This study is carried out to estimate the trade potentiality of Nepal using gravity model. The gravity model simply explains that the volume of trade between pairs of countries is a positive function of the size of two countries and negative function of the distance between them. The study has...

The paper attempts to verify the hypothesis that Romanian exports to the Russian Federation are below their potential. We first looked at statistical data regarding bilateral trade, custom duties and foreign direct investment; the resulting conclusions support our hypothesis. Further, we use a...