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A Gravity Model Approach To Analyzing The Trade Performance Of Caricom Member States

Author

Listed:
  • Antonio ALLEYNE
  • Troy LORDE

Abstract

This study examines the trade flows in commodities for CARICOM countries through the utilization of the traditional gravity model for international trade. Per capita GDP differential, trade to GDP and language all impact trade positively. On the other hand, geographical distance, exchange rate and unexpectedly, historical trade relationships have negative effects on trade. The results suggest that management of the exchange rate is critical and that CARICOM countries may be served better by trading with countries with higher living standards.

Suggested Citation

  • Antonio ALLEYNE & Troy LORDE, 2014. "A Gravity Model Approach To Analyzing The Trade Performance Of Caricom Member States," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(2).
    • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:2_10
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    File URL: http://www.usc.es/economet/reviews/aeid14210.pdf
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    Citations

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    Cited by:

    1. Abdullah Alhassan & Mary E. Burfisher & Mr. Julian T Chow & Ding Ding & Fabio Di Vittorio & Dmitriy Kovtun & Arnold McIntyre & Ms. Inci Ötker & Marika Santoro & Lulu Shui & Karim Youssef, 2020. "Is the Whole Greater than the Sum of its Parts? Strengthening Caribbean Regional Integration," IMF Working Papers 2020/008, International Monetary Fund.
    2. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.
    3. Antonio Alleyne & Zhaoyong Zhang & Yifei Mu, 2020. "Sustaining International Trade with China: Does ACFTA Improve ASEAN Export Efficiency?," Sustainability, MDPI, vol. 12(15), pages 1-30, July.
    4. Ambya Ambya & Lies Maria Hamzah, 2022. "Indonesian Coal Exports: Dynamic Panel Analysis Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 390-395.

    More about this item

    Keywords

    CARICOM; gravity model; bilateral trade; economic integration.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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