China and ASEAN-5 bilateral trade relationship

Siah, Kim Lan and Yusop, Zulkornain and Law, Siong Hook (2007) China and ASEAN-5 bilateral trade relationship. Sunway Academic Journal, 4. pp. 85-98.


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This paper examines the China-ASEAN bilateral trade relationship, using the Gravity model where the per capita income difference is included in the specification for testing the hypothesis. The empirical results based on Bounds test proposed by Pesaran et al. (2001) reveal that the transportation cost and real GDP are statistically significant determinants of bilateral trade. The trade distance remains an important deterrent to China-ASEAN trade, and higher economy size of a country has positive and significant influence on bilateral trade flows. The significant positive sign of the per capita GDP difference (PGDPdiff) variable suggests that Linder Hypothesis does not hold for the entire region.

Item Type: Article
Additional Information: First author affiliated with Multimedia University. Second and third authors affiliated with Universiti Putra Malaysia.
Uncontrolled Keywords: regional economic cooperation; free trade area; bilateral trade flows JEL : F1, F15
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HF Commerce
Divisions: Others > Non Sunway Academics
Depositing User: Administrator Admin
Date Deposited: 15 Oct 2012 07:14
Last Modified: 15 Oct 2012 07:14

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