Javascript must be enabled to continue!
A Gravity Model of Trade for Nicaraguan Agricultural Exports
View through CrossRef
This research aims to find the determining factors of Nicaraguan agricultural exports. To carry out this study, the author formulated a Gravity Model of Trade (GMT) and then made an estimation using a version of Ordinary Least Squares (OLS) that incorporates a consistent covariance matrix estimator to correct the heteroskedasticity and autocorrelation effects. The data considered observations over twenty years and for twelve countries: eight have signed a Free Trade Agreement (FTA) with Nicaragua and four have not. The variables that significantly increased the flow of Nicaraguan agricultural exports are the following: Nicaragua’s trading partners’ population, Nicaragua’s Gross Domestic Product per capita (GDP pc), the Real Exchange Rate (RER), and Nicaragua’s trading partners’ GDP pc; however, the distance variable turned out to be significantly trade-inhibiting. Free Trade Agreements (FTAs) predominantly have significant effects.
Universidad Nacional de Colombia
Title: A Gravity Model of Trade for Nicaraguan Agricultural Exports
Description:
This research aims to find the determining factors of Nicaraguan agricultural exports.
To carry out this study, the author formulated a Gravity Model of Trade (GMT) and then made an estimation using a version of Ordinary Least Squares (OLS) that incorporates a consistent covariance matrix estimator to correct the heteroskedasticity and autocorrelation effects.
The data considered observations over twenty years and for twelve countries: eight have signed a Free Trade Agreement (FTA) with Nicaragua and four have not.
The variables that significantly increased the flow of Nicaraguan agricultural exports are the following: Nicaragua’s trading partners’ population, Nicaragua’s Gross Domestic Product per capita (GDP pc), the Real Exchange Rate (RER), and Nicaragua’s trading partners’ GDP pc; however, the distance variable turned out to be significantly trade-inhibiting.
Free Trade Agreements (FTAs) predominantly have significant effects.
Related Results
Has the FTA Promoted Trade? Empirical Evidence from Korea
Has the FTA Promoted Trade? Empirical Evidence from Korea
Purpose - This study aims to analyze how the FTAs concluded by Korea over the past 20 years have affected Korea’s trade.
Design/methodology/approach - Using the gravity model...
Gravity applications enabled by quantum sensors. Perspectives for the FIQUgS project.
Gravity applications enabled by quantum sensors. Perspectives for the FIQUgS project.
The measurement of gravity acceleration and of its variations are commonly used by geophysicists in many Earth sciences applications. It is quite well known that gravity at the sur...
The Effect of Export on R&D Cost Behavior: Evidence from Korea
The Effect of Export on R&D Cost Behavior: Evidence from Korea
Purpose - This research intends to find out whether R&D cost stickiness shows differentiated aspects depending on exports in Korea. A cost behavior that indicates a lower rate ...
Antarctica crustal model by means of the Bayesian gravity inversion
Antarctica crustal model by means of the Bayesian gravity inversion
<p>The Antarctica crustal structure is still not completely unveiled due to the presence of thick ice shields all over the continent which prevent direct in situ meas...
eXperimental jOint inveRsioN (XORN) project: first results of a 3D joint gravity and magnetic inversion
eXperimental jOint inveRsioN (XORN) project: first results of a 3D joint gravity and magnetic inversion
<div>
<p><span>The Earth crust represents less than 1% of the volume of our planet but is exceptionally important as it preserves the sign...
Seismic Constrained Gravity Inversion: A Reliable Tool to Improve Geophysical Models Away from Seismic Information
Seismic Constrained Gravity Inversion: A Reliable Tool to Improve Geophysical Models Away from Seismic Information
The exploitation of gravity fields in order to retrieve information about subsurface geological structures is sometimes considered a second rank method, in favour of other geophysi...
Trade in the East and South China Seas, 600 CE to 1800 CE
Trade in the East and South China Seas, 600 CE to 1800 CE
In the period from 600 ce to 1800 ce, the countries bordering the East and South China Seas were in frequent maritime communication, sharing in the process cultural practices and c...
Export concentration and diversification impact on economic growth in the developed and developing countries of the world
Export concentration and diversification impact on economic growth in the developed and developing countries of the world
There is much evidence that export diversity has a positive effect on economic growth, but there is some evidence that the concentration of exports may be also related to economic ...