Table 2 - uploaded by Muhammad Shariat Ullah
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As part of its growth strategy, Bangladesh instituted a trade liberalization process in the early 1990s which gained momentum in later years. Trade grew from 24.4 to 45% of GDP between 1980–81 and 2007–08, an indicator of increased liberalization as well as the growing importance of the external sector in Bangladesh. Apart from its unilateral liber...
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Context 1
... have been three rounds of negotiations 6 that resulted in significant progress in the consolidated list of general and special tariff concessions granted by participating members to each other. Tariff concessions offered by the member countries at successive rounds of negotiations are presented in Table 2. After completion of the third round of negotiations, Bangladesh gained special tariff concessions for 587 products whereas the number of products under special concessions was only 3 and 63 after the first and second round of negotiations, respectively. ...
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Citations
... This study takes into account the gravity-related literature review and focuses on global international trade studies including Pakistan-relevant research studies. Export is used as a dependent variable in the majority of international research (Bhatti & Fazal, 2020;Kong & Kneller, 2016;Suvankulov & Guc, 2012;Trotignon, 2010;Ullah & Inaba, 2012). Likewise, the import was utilized as a dependent variable in various other research (Abiad, Mishra, & Topalova, 2014;Tumbarello, 2006;Westerlund & Wilhelmsson, 2011). ...
... Similarly, most of the analyses in the literature include GDP, per capita GDP of trade partners, and distance as independent factors (Abiad et al., 2014;Suvankulov & Guc, 2012;Ullah & Inaba, 2012). In this context, there are various more factors that may be included in gravity equations to illustrate the true picture of Pakistan's international trade. ...
... As a proxy for trade expenses, Baier and Bergstrand (2009) employed distance and border share. However, over time, dummy variables such as geographical location, free trade agreements (FTA), cultural proximity, and economic multilateral such as SAARC, EU, and ECO etc., were incorporated to the proposed gravity model (Shafiq, Hua, Bhatti, & Gillani, 2021;Trotignon, 2010;Ullah & Inaba, 2012). ...
This research study employs a gravity model to explore Pakistan's trade potential from 2000 to 2020. China, United Arab Emirates (UAE), Saudi Arabia (KSA), Kuwait, United States (USA), Malaysia, Japan, India, Singapore, Afghanistan, Iran, Spain, Germany, United Kingdom (UK) and Belgium are among our significant trading partners. The study uses both static and dynamic econometric techniques to capture the trade potential of Pakistan. The findings from both methodologies are comparable, indicating that economic size and distance have a significant effect on bilateral trade. Furthermore, throughout the research period, political globalization is determined to be considerable and has an important influence on the economic masses. These factors support the theoretical model(s) that Pakistan and Pakistan’s trading partners with economic integration, political globalization, and distance all depict a significant impact on trade relations.
... The city is the "point" in the network, and the spatial correlation between cities in resilience is the "line" in the network, and all the points and lines constitute the spatial network of urban resilience. The gravity model can not only avoid the problem of inaccurate network structure features caused by VAR model being too sensitive to select lag order, but also reveal the evolution characteristics of spatial correlation by taking economic development, innovation investment, and geographical distance into consideration (Dascal et al., 2002;Ullah & Inaba, 2012). Therefore, the gravity model is introduced into the spatial network of urban resilience in this paper. ...
Based on 2012–2017 panel data of 282 China’s cities, this paper uses the entropy method to calculate an urban resilience index, uses spatial cold–hot spots model to explore spatial characteristics of urban resilience, uses revised the gravity model to construct urban resilience spatial network characteristics, and uses the social network analysis method to analyze spatial network characteristics of urban resilience. The results show that: (1) Urban resilience of China’s cities has been gradually improved, and there is a geographical aggregation effect, with significant changes in hot spots and insignificant changes in cold spots. (2) Urban resilience has obvious spatial correlation and linkage effects and strong temporal fluctuation. The cities with higher degree centrality and closeness centrality are consistent in spatial distribution, mostly located in Bohai Rim, Pan‐Yangtze River Delta, Pearl River Delta and some central regions. The centrality obviously shows non‐equilibrium in spatial distribution. The cities with high centrality are mostly provincial capitals. (3) The “club effect” has not yet been reflected in the urban resilience spatial network, and the advantages of different regions are obviously different. Therefore, it is necessary to face up to the spatial difference of urban development and enhance the diversity and pertinence of urban resilience construction.
... BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation) was found to be intra-bloc export diversion, but no net export creation or diversion. Ullah and Inaba (2012) attempted to investigate the impact of four RTAs (SAFTA, APTA, BIMSTEC and D8) 6 to the export flows of Bangladesh using a gravity model. They used panel data from 1992 to 2009 with respect to 40 trading partners of Bangladesh. ...
... member country was significantly negative. The empirical result, which is also supported by the existing literature (Hassan, 2001;Ullah and Inaba, 2012), indicates that the APTA, SAFTA and D8 have been of little practical significance, since even declared policies have been poorly implemented. ...
This study attempts to investigate, using the GAP model, the satisfaction level of customers towards
the bancassurance channel of buying life insurance policies. The study was based on the primary data
collected using structured questionnaire from the customers buying life insurance policies of SBI Life
Insurance Company Limited through different branches of State Bank of India in Guwahati city of Assam,
India. Cronbach’s alpha was used to test the reliability of the questionnaire. Statistical tools such as Mean,
Standard Deviation, and Wilcoxon-Sign ranks test was used to attain the objective of the study. It was
found that majority of the customers were not satisfied with buying a life insurance policy from the
bank. In spite of having a favourable experience with the bancassurance channel, the majority of the
customers were not satisfied. This is because one of the factors affecting the satisfaction of customers is
the expectation of customers from the bancassurance channel. To state precisely, it can be mentioned that
favourable experience may not always lead to the satisfaction of customers. Therefore, this significant
issue needs to be addressed properly by the policymakers in order to make the customers satisfied as well
as for the sustainable development of the bancassurance channel.
... Another important factor that has been considered in gravity models while examining bilateral trade and FDI flows is regional trade agreements (e.g. Baier & Bergstrand, 2007, Balgati, Egger, & Pfaffermayr, 2008Ullah & Inaba, 2012;Thangavelu & Narjoko, 2014;Chenaf-Nicet and Rougier, 2016;Martínez-San Román, Bengoa, & Sánchez-Robles, 2016;Cherif & Dreger, 2018), which we will also include in our estimations. Furthermore, we control for civil conflict and institutional quality of the host country. ...
The determinants of foreign direct investment (FDI) have been extensively studied. Even though there is extensive research in the area, most of it is based on analyzing the effects of host country characteristics on FDI flows, and yet there is little research on how neighboring country characteristics play a role in facilitating FDI flows to host countries. This paper analyzes the association between the democracy level in neighboring countries and FDI flows to host countries. Using bilateral FDI flows from the OECD countries, with a large host country sample, we find that countries surrounded by democratic countries attract higher FDI flows. Furthermore, we find evidence that countries that are surrounded by neighboring countries with good institutions tend themselves to have better institutions, experience lower civil conflict, and have higher political stability and hence indirectly attract higher FDI flows. Our findings suggest that if neighboring countries act in such way as to become more democratic, FDI flows to these countries would be higher since not only does improving the quality of democracy attract more FDI inflows, but also being surrounded by neighboring advanced democratic countries will also lead to higher FDI flows to them.
... Building on previous work (Pal, 2008;Sorgho, 2016;Ullah & Inaba, 2011) we argue that gains from RTAs are doubtful while the proliferation of RTAs has globally negative effect on trade. The simple existence of RTAs does not necessarily guarantee that multilateral trading system will be the next step. ...
This paper examines the negative impact of the paralysis observed in the World Trade Organization (WTO) functioning on international business. We provide an overview of the loopholes in the WTO rules and principles which became serious threats for the multilateral trading system. Our research identifies important loopholes in the MFN clause, DSB and Appellate Body. We bring clarity that the paralysis observed in the WTO functioning is a consequence of these factors. The deviations and exceptions of the WTO rules permit the WTO members to compete “unfairly”. China is among the economies which are the most efficient in this respect. We term China’s behaviour on the global market as “economic factitious disorder”. It can be explained as permanently maintaining the status of a developing country by China and using preferences for LDCs despite a really high level of economic development. These findings indicate that the WTO lacks the mechanism to react and to prevent such abuses. They were not envisaged by the WTO creators, which suggests the need of the WTO reform. We contribute to international business research and the international organizations literature by identifying the causes of the paralysis of the WTO functioning.
... While free trade agreements (FTAs) are generally expected to increase trade flows (Baier and Bergstrand, 2007;Lee and Park, 2007;Vanhnalat et al. 2015), there is also evidence of trade diversion when evaluating specific RTAs (Carrere, 2006;Kahouli and Maktouf, 2014). Moreover, there are examples of RTAs that do not lead to increased export flows, such as for Bangladesh when there was restricted regionalism and high non-tariff barriers (Ullah and Inaba, 2012), or in the case of Jordan when the focus was on the short term impacts of limited liberalisation (Busse and Gröning, 2012). ...
... Empirical studies by Ullah and Inaba (2012) and Busse and Gröning (2012) apply gravity models to examine the impacts of various FTAs for particular countries and find that the effects on trade flows can be negative in some cases. In particular, Ullah and Inaba (2012) , 1995-2017 (%) no statistically significant impacts on Bangladesh's exports, other RTAs such as the Asia Pacific Trade Agreement and SAARC have negative impacts. ...
... Empirical studies by Ullah and Inaba (2012) and Busse and Gröning (2012) apply gravity models to examine the impacts of various FTAs for particular countries and find that the effects on trade flows can be negative in some cases. In particular, Ullah and Inaba (2012) , 1995-2017 (%) no statistically significant impacts on Bangladesh's exports, other RTAs such as the Asia Pacific Trade Agreement and SAARC have negative impacts. Moreover, Busse and Gröning (2012) find that with the exception of the FTA with the US, which has stimulated Jordan's exports, other multilateral or preferential trade liberalisation have not resulted in statistically significant effects on exports and imports. ...
In recent years, Vietnam has embarked on trade liberalisation leading to increased trade flows, as well as benefiting from increased foreign direct investment (FDI) inflows. This paper analyses the impacts of a range of trade agreements and FDI inflows on Vietnamese trade flows. We offer new insights through considering which of the key trade agreements have been more efficient in expanding Vietnamese trade, and how the sensitivity of trade to FDI has changed as a result. The estimation of gravity models over a 1996-2014 study period indicates that the bilateral trade agreements with the US and Japan have resulted in the most notable expansion of Vietnamese exports and imports, while the impacts from other regional trade agreements involving Vietnam are more mixed. We also find evidence of Vietnamese trade and FDI being complementary, with the positive relationship between FDI and exports becoming stronger following the bilateral trade agreements with the US and Japan.Keywords: Trade Liberalisation, Trade, Foreign Direct InvestmentJEL Classifications: F13, F14, F15, F21DOI: https://doi.org/10.32479/ijefi.7767
... In the first part of the gravity literature, we focus on Pakistan-related studies that discussed the international trade and in the second part international studies at World level have been taken into account. In most of the international level studies, export are taken as a dependent variable (Kong and Kneller, 2016;Suvankulov and Guc, 2012;Trotignon, 2010;Ullah and Inaba, 2012). Similarly, some other studies used import as dependent variable (Abiad et al., 2014;Tumbarello, 2006;Westerlund and Wilhelmsson, 2011). ...
... Similarly; GDP, per capita GDP of the trade partners as well as distance are used as independent variables in nearly all studies in the literature (Abiad et al., 2014;Ranajoy et al., 2006;Suvankulov and Guc, 2012;Ullah and Inaba, 2012;Westerlund and Wilhelmsson, 2011). Within this context, numerous other variables that can be involved in the gravity equations, which can explain the real picture of international trade of Pakistan. ...
... Baier and Bergstrand (2009) used distance and border share as a proxy for trade costs. However, dummy variables for other factors that can affect trade volume, like geographical area, cultural proximately and as well as free trade agreements and economic blocks such as ASEAN, SAARC, NAFTA, WTO, EU, ECO, etc. were added to the gravity models over time (Ranajoy et al., 2006;Trotignon, 2010;Ullah and Inaba, 2012). ...
This paper examines Pakistans trade flows using a gravity model for the period 2002-2015. We have selected the following major trade partners: China, UAE, Saudi Arab, United States, Kuwait, Malaysia, Japan, India, Singapore, Afghanistan and Iran. In this research, we employed static and dynamic econometric approaches. The results from the two approaches are similar, which showed economic size and distance have played a crucial role in bilateral trade. Furthermore, political globalization was found to be significant and played a vital role during the study period. These variables confirm that the theoretical models, Pakistan and Pakistan trade partner with economic masses, political globalization, and distance strongly effect trade liaison.
... Due to the failure of trade agreements, clothing export from Bangladesh is facing non-tariff barriers. Export flows from Bangladesh have not benefitted from the preferential and free trade agreements (Ullah & Inaba, 2012). Ullah and Inaba (2012) also stated that there is bilateral distrust, political conflict, and a higher volume of illegal and informal bilateral trade. ...
... Export flows from Bangladesh have not benefitted from the preferential and free trade agreements (Ullah & Inaba, 2012). Ullah and Inaba (2012) also stated that there is bilateral distrust, political conflict, and a higher volume of illegal and informal bilateral trade. These factors have affected the demand of clothing from Bangladesh, including the recently suspended US GSP facility for clothing products from Bangladesh, which affected the demand to the United States. ...
The objective of this research is to explore the demand side and supply side of the textile-clothing industry of Bangladesh as a background study for further research. In terms of the demand side aspects, we investigate demand forecasting, product design and development, order management with distribution, and bilateral relations. For the supply side components, we identify raw materials sourcing, cutting-making-trimming (CMT), and delivery. We describe fiber, yarn, fabric, dyeing-printing-finishing, and accessories as the backward linkages. Using input-output analysis, we discovered that the backward linkage coefficient of Bangladesh was 1.86, which is 1.37 times smaller than China. Transport and communication, public services, and port services, etc., can be identified as forward linkages. The input-output-based forward linkage coefficient of Bangladesh is 1.45, which is 22% lower than China. Comparatively, China is still unsurpassed among the Asian textile-producing nations. Although Bangladesh is doing well in terms of contract-based supply of clothing goods, the demand side needs to be developed. The demand side requires more concentration from firm owners and government to help it transition from assembly to full package production.
... In its simplest form, the gravity model posits that trade between two countries is a positive function of GDP (i.e., 'mass') and a negative function of trade costs (i.e., distance). Empirical applications have extended this specification to encompass (inter alia) preferential trade (Foster et al., 2011;Hayakawa and Yamashita, 2011;Kandogan, 2008;Márquez-Ramos et al., 2012;Martínez-Zarzoso et al., 2009;Ulah and Inaba, 2012), contiguity (i.e., share a common border) (Bergstrand, 1985;Thoumi, 1989), common language and/or ex-colonial ties (e.g. Rose and van Wincoop, 2001), or even to cater for the effect of distance along different hemispheres, as well as remoteness which aims at capturing the importance of the degree of proximity from large countries when engaging in trade (Melitz, 2007). Other developments (Arnon et al., 1996;Hallack, 2006) account for the so called 'Linder' hypothesis (Linder, 1961), which posits that countries with similar per capita incomes have a greater tendency to engage in mutual trade. ...
This paper examines the ‘small share’ problem inherent within the constant elasticity of substitution Armington specification. As a de facto research tool in the quantitative trade literature, this structural bias plagues the results of numerous multi-region CGE studies. Kuiper and van Tongeren (2006) proposed a fusion of gravity and CGE specifications to remedy said bias, which the current paper further develops. With a pervasiveness of ‘small-share’ examples on Mercosur–European Union trade owing to the latter's restrictive tariff regime, the results reveal that significant additional trade led gains to Mercosur under a potential preferential trade agreement when compared with the standard Armington treatment.
In recent times, both Bangladesh and China have shown interest to sign free trade area (FTA) deal. However, to the best of our knowledge, no studies have examined the potential impacts of such deal on member countries. The current study attempts to fill this gap as we examine the possible impacts of the proposed Bangladesh–China bilateral FTA using a static general equilibrium framework. Employing the standard Global Trade Analysis Project (GTAP) model and exploiting the latest available version (version 10) of GTAP database, we perform two alternative simulations to analyze the potential impacts of the proposed FTA. In simulation 1, both the FTA members fully abolish all tariffs and non-tariff barriers on member country’s imports, while in simulation 2, the FTA deal considers a special and differential (S&D) treatment for Bangladesh. The findings suggest that under simulation 1, implementation of FTA would worsen the aggregate welfare in Bangladesh. At the same time, Bangladesh would not fully utilize the duty-free access to expand its export to China. By contrast, in simulation 2, Bangladesh can improve its overall welfare by partially protecting its domestic market for Chinese imports. However, the expansion of Bangladesh’s RMG sector would be hampered, as the price of imported intermediate inputs from China would become relatively expensive in simulation 2. In both the simulations, China would be the net gainer in terms of aggregate welfare by utilizing market access provisions under the proposed FTA.
