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CARICOM Bilateral Trade: A Preliminary Analysis Using the Gravity Model AgEcon
Sandberg, H. Mikael; Taylor, Timothy G.; Seale, James L., Jr..
This paper investigates the determinants of intra-CARICOM bilateral trade and the CARICOM member's trade with the North American and European countries using the gravity model. Seventeen annual cross-sections are estimated for the period 1980 through 1996. Overall, the empirical results indicate that the gravity model has considerable potential to explain intra-CARICOM bilateral trade as well as trade between CARICOM members and non-members. The evidence suggests that both the importer's GDP per capita and the exporter's GDP per capita exert strong positive effects on CARICOM trade levels. Since these effects are found to be statistically the same, we conclude that the gravity model is symmetric with respect to GDP per capita. Further, sharing a common...
Tipo: Working or Discussion Paper Palavras-chave: Caribbean economies; CARICOM; FTAA; Gravity model; Regional integration; International Relations/Trade.
Ano: 2002 URL: http://purl.umn.edu/15636
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