<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The methodology carried out to achieve this objective involves the use of various techniques of estimation for the gravity model (Static and dynamic). More specifically, this study aims to investigate the formational impact of regional trade integration agreements on trade flows within a group of countries using the same currencies and ECOWAS at large. The main use of regional variables into gravity models is intended to determine whether RTAs lead to trade creation, or diversion. The results show the presence of a strong relationship among the factors of both RIAs and trade flows.</p></abstract>

This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The methodology carried out to achieve this objective involves the use of various techniques of estimation for the gravity model (Static and dynamic). More specifically, this study aims to investigate the formational impact of regional trade integration agreements on trade flows within a group of countries using the same currencies and ECOWAS at large. The main use of regional variables into gravity models is intended to determine whether RTAs lead to trade creation, or diversion. The results show the presence of a strong relationship among the factors of both RIAs and trade flows.

The Gravity Model Approach: An Application on the Eco Was Trading Bloc

School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

Associate Professor, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

Senior Lecturer, Department of Economics and Agribusiness School of Economics, Finance and Banking UUM College of Business Universiti Utara Malaysia

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"The Gravity Model Approach: An Application on the Eco Was Trading Bloc"}

This study aims to examine bilateral trade flows across ECOWAS-15 nations with the use of a panel and cross section for the period of 1981-2013. The...

The Gravity Model Approach: An Application on the Eco Was Trading Bloc

Publicado en línea: 26 jul 2016

Páginas: 67 - 75

DOI: https://doi.org/10.1515/jeb-2016-0005

© South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.