Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)

Basim Hazim Al-Badri

doi:doi:10.11648/j.ijaas.20150102.11

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Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)

Basim Hazim Al-Badri

Published in International Journal of Applied Agricultural Sciences (Volume 1, Issue 2)

Received: 14 May 2015 Accepted: 31 May 2015 Published: 1 June 2015

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Abstract

The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.

Published in	International Journal of Applied Agricultural Sciences (Volume 1, Issue 2)
DOI	10.11648/j.ijaas.20150102.11
Page(s)	19-25
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Gravity, Trading Partners, Foreign Trade, Trading Flow

References

[1]	R.Amin, Z. Hamid and N. Saad, "Does Trade AmongASEAN Members Promote Efficiency?SectorialEvidence from the Gravity Model", International Journal of Humanities and Social Science, Vol. 1,p.p 237- 243,2011.
[2]	E. Tafenan, "Explaining German Imports of Olive Oil Evidence from Gravity Model", Paper prepared from presentation at the 12th congers people, Food and Environment, Global Trends and European- Strategies- Gent, Belgium,p.p.23-26.2009.
[3]	H.Sandberg,"Caricom Bilateral Trade: A preliminary analysis using the gravity model", Technical Paper series by international of agricultural trade and policy center, p.p. 62-69,2002.
[4]	H.El- Nader, A. El- Raimony, & A. Irshaidat,"An Empirical Study of the Determinants of Tourism Exports Flow: Using Gravity Model, the Case of Jordan (1976-2005)", El- Yarmok Researches Journal, Erbid, Vol. 26, p.p. 761-782, 2010.
[5]	S. Santos, and T. Silvana, "The log of Gravity", The Review of Economics and Statistics , 88(4) , p.p.641-645,2006.
[6]	A.Al- Edary, & M. Al-Shamarie, "Estimate The Gravity Model Of United States Of America And Some Countries For The Period From 1991-2011/ an Econometric Study", International Journal of Humanities and Social Sciences (IJHSS), Vol. 3, p.p.101-116,2014.
[7]	J.Johnson,"Determinants of Wheat Trade 1999 – 2008", Master thesis, Department of Agricultural Economics, College of Agriculture, Kansas State University, Manhattan,p.p.113-120,2011.
[8]	T. Chaney, "The Gravity Equation in International Trade: An Explanation", University of Chicago, NBER and CEPR. p.2- 9,2011.
[9]	H. Hassanin, "Gravity Trade Model: Application on Rice and Orange", Master Dissertation, Dept. of Agricultural Economics, College of Agriculture, Zagazig University,p.p.34-39,2010.
[10]	P. Egger, "An econometric view on the estimation of gravity models and the calculation of trade potentials", World Economy J., vol.25, pp.297-312,2002.

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Basim Hazim Al-Badri. (2015). Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). International Journal of Applied Agricultural Sciences, 1(2), 19-25. https://doi.org/10.11648/j.ijaas.20150102.11

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ACS Style

Basim Hazim Al-Badri. Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). Int. J. Appl. Agric. Sci. 2015, 1(2), 19-25. doi: 10.11648/j.ijaas.20150102.11

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AMA Style

Basim Hazim Al-Badri. Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). Int J Appl Agric Sci. 2015;1(2):19-25. doi: 10.11648/j.ijaas.20150102.11

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@article{10.11648/j.ijaas.20150102.11,
  author = {Basim Hazim Al-Badri},
  title = {Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {1},
  number = {2},
  pages = {19-25},
  doi = {10.11648/j.ijaas.20150102.11},
  url = {https://doi.org/10.11648/j.ijaas.20150102.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20150102.11},
  abstract = {The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.},
 year = {2015}
}

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TY  - JOUR
T1  - Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)
AU  - Basim Hazim Al-Badri
Y1  - 2015/06/01
PY  - 2015
N1  - https://doi.org/10.11648/j.ijaas.20150102.11
DO  - 10.11648/j.ijaas.20150102.11
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 19
EP  - 25
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20150102.11
AB  - The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.
VL  - 1
IS  - 2
ER  -

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Author Information

Basim Hazim Al-Badri

Dept. of Agricultural Economics, Baghdad University, Baghdad, Iraq

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APA Style

Basim Hazim Al-Badri. (2015). Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). International Journal of Applied Agricultural Sciences, 1(2), 19-25. https://doi.org/10.11648/j.ijaas.20150102.11

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ACS Style

Basim Hazim Al-Badri. Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). Int. J. Appl. Agric. Sci. 2015, 1(2), 19-25. doi: 10.11648/j.ijaas.20150102.11

Copy | Download

AMA Style

Basim Hazim Al-Badri. Gravity Model in Foreign Trade(Iraqi Dates as a Case Study). Int J Appl Agric Sci. 2015;1(2):19-25. doi: 10.11648/j.ijaas.20150102.11

Copy | Download

@article{10.11648/j.ijaas.20150102.11,
  author = {Basim Hazim Al-Badri},
  title = {Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {1},
  number = {2},
  pages = {19-25},
  doi = {10.11648/j.ijaas.20150102.11},
  url = {https://doi.org/10.11648/j.ijaas.20150102.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20150102.11},
  abstract = {The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Gravity Model in Foreign Trade(Iraqi Dates as a Case Study)
AU  - Basim Hazim Al-Badri
Y1  - 2015/06/01
PY  - 2015
N1  - https://doi.org/10.11648/j.ijaas.20150102.11
DO  - 10.11648/j.ijaas.20150102.11
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 19
EP  - 25
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20150102.11
AB  - The Gravity Model is considered as one of the important models in foreign trade, because it is used to explain the most important determinants of country exports of it’s exported goods and to determine the competitive state for exports of the country in world market, besides it gives an idea about the most important countries in exporting their goods. The study aims to determine the most important factors affecting the flow of Iraqi dates to world market, and to measure the influence of these factors and to determine suitable model to understand most important determinants of foreign trade of Iraqi dates with most important trading partners. The study proved that per capita of GDP, quantity of commodity produced by country ,quantity of commodity exports from Iraq to global market , export price (FOB) of commodity and equilibrium exchange rate of local currencyversus US$, were the most important factors because these factors formed about (%99) of determinants of flow of Iraqi dates to global market. By analyzing this model with most important trading partners (UAE and Syria), the study found that per capita of GDP representing economic size of the two partners, population in the two partners and the distance between trading capitals with inverse sign were the most important factors.Most of these factors compatible with gravity trade model between states, and these factors determine (%98) and (%58) of changes in flow of Iraqi dates to UAE and Syria respectively.
VL  - 1
IS  - 2
ER  -

Copy | Download