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Determinants of forest product group trade by gravity model approach: A case study of China

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  • Nasrullah, Muhammad
  • Chang, Liu
  • Khan, Khalid
  • Rizwanullah, Muhammad
  • Zulfiqar, Farah
  • Ishfaq, Muhammad

Abstract

The study emphasised the basic factors which are responsible for influencing China's forest product group trade. The gravity model approach is applied on forest product group 44, 47, 48, 49 and 94 by using panel data from period 2001 to 2018. Panel unit root test shows that factor affecting variables are stationary for all models while, the Hausman test is used for suitable model selection. Results revealed that GDP and GDPC have a positive impact on trade, whereas distance has an inverse impact on trade. Other factor used in the study also has a significant effect on the China trade. The forest trade is significantly affected after the global economic crises and countervailing/antidumping duties imposed by USA and other countries on China. Similarly, APEC and OECD have significant impact on China bilateral trade of forest products. This study concluded that it would be better to promote exports and import to countries having large economies or short distance countries. It is suggested that by promote Chinese language to partner countries can increase the trade flow of China's forest product group trade.

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  • Nasrullah, Muhammad & Chang, Liu & Khan, Khalid & Rizwanullah, Muhammad & Zulfiqar, Farah & Ishfaq, Muhammad, 2020. "Determinants of forest product group trade by gravity model approach: A case study of China," Forest Policy and Economics, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:forpol:v:113:y:2020:i:c:s1389934119306094
    DOI: 10.1016/j.forpol.2020.102117
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    5. Boubacar, Inoussa, 2024. "US imports of softwood lumber: Assessing the significance of spillover effects," Forest Policy and Economics, Elsevier, vol. 160(C).
    6. Khanal, Ghanashyam & Zhang, Daowei & Prestemon, Jeffrey P., 2024. "A gravity model analysis of trade regulations on wood products exports: Evidence from Cameroon, Ghana, and the republic of Congo," Forest Policy and Economics, Elsevier, vol. 166(C).
    7. Bayarmaa Ganbaatar & Juan Huang & Chuanmin Shuai & Asad Nawaz & Madad Ali, 2021. "Empirical Analysis of Factors Affecting the Bilateral Trade between Mongolia and China," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    8. Christiana Manu, 2021. "The Impact of Trade Agreement on Agricultural Trade Flow in West Africa," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(1), pages 1-89, January.
    9. Zhang Xiuqin & Xing Feifei & Guo Junhui & Khan Yasir, 2023. "Dynamic Fluctuation Measurement and Factor Decomposition of China’s Export Growth to Japan and South Korea in the Context of COVID-19," SAGE Open, , vol. 13(4), pages 21582440231, November.
    10. Zainuddin, Muhamad Rias K V & Shukor, Md Shafiin & Zulkifli, Muhamad Solehuddin & Abdullah, Amirul Hamza, 2021. "Dynamics of Malaysia’s Bilateral Export Post Covid-19: A Gravity Model Analysis," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(1), pages 51-69.

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