Open AccessDeterminants of Bilateral Trade Flows Between Vietnam and Trading Partner Countries – Gravity Model Approach
Author(s) -
Lê Khương Ninh,
Phan Anh Tú,
Pham Thi Nhu Hao
Publication year - 2021
Publication title -
global business and economics anthology
Language(s) - English
Resource type - Journals
ISSN - 1553-1392
DOI - 10.47341/21129
Subject(s) - gravity model of trade , bilateral trade , openness to experience , international economics , convergence (economics) , international trade , economics , exchange rate , geographical distance , population , economic integration , business , geography , monetary economics , economic growth , china , psychology , social psychology , demography , archaeology , sociology
This study uses the gravity model to investigate the bilateral trade flows between Vietnam and 52 countries from 2001 through 2011. The data are collected from International Trade Centre (ITC), International Monetary Fund (IMF), and the World Bank (WB). The results show that economic size, geographical distance, economic distance, technological innovation, trade openness, free trade agreement, population, exchange rate, and common border affect the bilateral trade flows between Vietnam and these 52 countries. More importantly, this study uses the speed-of-convergence method to find new potential trading partners for Vietnam, such as those in Africa and Southwest Asia.