Determinats of Size of Trade : A Cross Country Analysis

O. , Okonta Patrick

doi:10.12816/0052299

Article Details

Determinats of Size of Trade : A Cross Country Analysis

Authors:

O. , Okonta Patrick

Publisher:

National Library Singapore

Main Topics:

Economics and Finance

Journal:

Singaporean Journal of Business, Economics and Management Studies 2018 Vol.6 Issue 10, pp.13-26

Document Type:

Article

Publication Date:

12/2018

Document Language:

English

Document ID (Org No.):

130994

Frequency:

Monthly

pISSN:

23013621

DOI:

10.12816/0052299

Descriptors:

Keywords:

Abstract:

 International trade remains a veritable instrument in developmental process. However, whatdetermines trade between countries remains an issue of empirical investigation.Consequently, the study examines the determinants of trade in cross countries context andtrade policy effects on the diversification of the economy. The study provides a review of thekey determinants of trade and identifies proxies that enable us to quantify the relativeimportance of the different channels. We estimate this across a panel of twenty two countriesboth (developed and developing) which Nigeria has traded with most in US dollar terms inthe past 20 years. The finding was quite satisfactory since the estimates passed the economic,statistical and econometric expectation of evaluation. However, while GDP is positive andstatistically significant in determining trade, distance has the anticipated negative sign and isslightly over one, indicating that trade between a pair of countries falls by a little over 1 percent for every 1 percent increase in the distance between them. Also, the coefficient on thedummy variable for a common border indicate two countries that share a common borderengage more in trade than two otherwise similar countries. Again, the effect oflandlockedness which may add to transportation costs also shows holding constant for otherfactors, the lack of ocean ports reduces trade by about 30 per cent. Sharing a commonlanguage increases trade significantly. There is evidence that exchange rate volatility hasnegative impact on trade. Population displays positive, though not statistically significant indetermining bilateral trade.

Article Details

Determinats of Size of Trade : A Cross Country Analysis

Authors:

O. , Okonta Patrick

Publisher:

National Library Singapore

Main Topics:

Economics and Finance

Journal:

Singaporean Journal of Business, Economics and Management Studies 2018 Vol.6 Issue 10, pp.13-26

Document Type:

Article

Publication Date:

12/2018

Document Language:

English

Document ID (Org No.):

130994

Frequency:

Monthly

pISSN:

23013621

DOI:

10.12816/0052299

Descriptors:

TRADE VOLUME

EXPORTS

IMPORTS

ECONOMIC DEVELOPMENT

TRADE POLICY

Trade

Liberalization

Economic Diversification Cross Country Analysis

Issues

Article Details

Authors: O. , Okonta Patrick

Publisher: National Library Singapore

Main Topics: Economics and Finance

Journal: Singaporean Journal of Business, Economics and Management Studies 2018 Vol.6 Issue 10, pp.13-26

Document Type: Article

Publication Date: 12/2018

Document Language: English

Document ID (Org No.): 130994

Frequency: Monthly

pISSN: 23013621

DOI: 10.12816/0052299

Descriptors:

Issues

Authors:

O. , Okonta Patrick

Publisher:

National Library Singapore

Main Topics:

Economics and Finance

Journal:

Singaporean Journal of Business, Economics and Management Studies 2018 Vol.6 Issue 10, pp.13-26

Document Type:

Article

Publication Date:

12/2018

Document Language:

English

Document ID (Org No.):

130994

Frequency:

Monthly

pISSN:

23013621

DOI:

10.12816/0052299