China and EU as trade competitors: different methodological approaches
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 34th International Conference: Mathematical Methods in Economics. |
| MU Faculty or unit | |
| Citation | |
| Web | http://mme2016.tul.cz/conferenceproceedings/mme2016_conference_proceedings.pdf |
| Field | Economy |
| Keywords | gravity model; trade; China; exports; EU; high-tech |
| Description | Gravity models have been widely used in the international economy. Numerous papers have used gravity models as their main methodology to estimate the impacts and determinants of international flows of goods, capital or labor. However, the specifications of gravity models vary a lot. Numerous researches have focused on how to correctly specify the gravity models in order to get the best results. In our paper we study the impact of Chinese exports on the exports of EU15 countries in the period 2010-2014. However, the literature about gravity models is wide and different authors recommend different estimation techniques in their papers. The aim of this paper is to offer different specifications of trade gravity models and compare the results for our research topic. We find out those different specifications indeed deliver different results; however, the differences are not substantial. We can conclude that the use of different methodological approaches does not differ the answer for our research question. In both cases the models show that we can observe negative, but marginal, impact of Chinese high-tech exports on the exports of selected European countries. |
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