Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Does infrastructure facilitate trade connectivity? Evidence from the ASEAN

Does infrastructure facilitate trade connectivity? Evidence from the ASEAN This paper explores the impact of infrastructure on trade connectivity among ASEAN and three Asian countries—India, China, and Japan. Our study is mainly motivated by the increased infrastructure investment and trade among these countries in recent years. The main results of trade network analysis include high trade density and interconnectedness among ASEAN, India, China, and Japan. There are specific “trade intensive paths” among the few countries in the group. It highlights the “export hubs” or main “suppliers of intermediate goods” in the region. Further, the paper analyzed the nexus between trade connectivity and infrastructure by applying the panel fixed effects method and Poisson pseudo-maximum likelihood. Moreover, the robustness of the results is tested by estimating two-stage least square. Hard infrastructure, foreign direct investment plays a crucial role in bringing the nexus to trade connectivity. Reducing trade barriers and improving infrastructure quality are essential for deepening regional trade integration. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asia Europe Journal Springer Journals

Does infrastructure facilitate trade connectivity? Evidence from the ASEAN

Vidya, C. T.; Taghizadeh-Hesary, Farhad
Asia Europe Journal , Volume 19 (Suppl 1) – Dec 1, 2021
Download PDF
25 pages

Loading next page...
 
/lp/springer-journals/does-infrastructure-facilitate-trade-connectivity-evidence-from-the-hnKeyysIXQ
Publisher
Springer Journals
Copyright
Copyright © The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2021
ISSN
1610-2932
eISSN
1612-1031
DOI
10.1007/s10308-021-00614-6
Publisher site
See Article on Publisher Site

Abstract

This paper explores the impact of infrastructure on trade connectivity among ASEAN and three Asian countries—India, China, and Japan. Our study is mainly motivated by the increased infrastructure investment and trade among these countries in recent years. The main results of trade network analysis include high trade density and interconnectedness among ASEAN, India, China, and Japan. There are specific “trade intensive paths” among the few countries in the group. It highlights the “export hubs” or main “suppliers of intermediate goods” in the region. Further, the paper analyzed the nexus between trade connectivity and infrastructure by applying the panel fixed effects method and Poisson pseudo-maximum likelihood. Moreover, the robustness of the results is tested by estimating two-stage least square. Hard infrastructure, foreign direct investment plays a crucial role in bringing the nexus to trade connectivity. Reducing trade barriers and improving infrastructure quality are essential for deepening regional trade integration.

Journal

Asia Europe Journal – Springer Journals

Published: Dec 1, 2021

Keywords: Regional trade integration; Trade connectivity; Trade network models; Trade intensive paths; F14; F15; R40

References

  • Trade costs
    Anderson, J; Wincoop, VE
  • Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting
    Baldwin, RE; Okubo, T
  • Trading preferentially: theory and policy
    Bhagwati, J; Greenaway, D; Panagariya, A
  • The Lagrange multiplier test and its applications to model specification in econometrics
    Breusch, TS; Pagan, AR
  • Regional cooperation, infrastructure and trade costs in Asia in the book trade facilitation and regional cooperation in Asia
    Brooks, DH
  • Two-step two-stage least squares estimation in models with rational expectations
    Cumby, RE; Huizinga, J; Obstfeld, M
  • The world trade network
    De Benedictis, L; Tajoli, L
  • Network analysis of world trade using the BACI-CEPII dataset
    De Benedictis, L; Nenci, S; Santoni, G; Tajoli, L; Vicarelli, C
  • Disentangling the impact of infrastructure on trade using a new index of infrastructure
    Donaubauer, J; Glas, A; Meyer, B; Nunnenkamp, P
  • EMU and trade: a PPML re-assessment with intra-national trade flows
    Esteve-Pérez, G-P; Llorca-Vivero, R; Martínez-Serrano, JA
  • Institutions, infrastructure, and trade
    Francois, J; Manchin, M
  • Multidimensional connectivity: benefits, risks, and policy implications for Europe and Central Asia
    Gould, D; Kenett, DY; Panterov, G
  • The architecture of globalization: a network approach to international economic integration
    Kali, R; Reyes, J
  • Alternative tests of the error components model
    Moulton, BR; Randolph, WC
  • Gravity redux: measuring international trade costs with panel data
    Novy, D
  • Export performance and trade facilitation reform: hard and soft infrastructure
    Portugal-Perez, A; Wilson, JS
  • Trade policy and economic growth: a skeptic’s guide to the cross-national evidence
    Rodriguez, F; Rodrik, D
  • Infrastructure, trade facilitation, and network connectivity in sub-Saharan Africa
    Shepherd, B
  • The log of gravity
    Silva, JS; Tenreyro, S
  • Structural position in the world system and economic growth, 1955–1970: a multiple-network analysis of transnational interactions
    Snyder, D; Kick, EL
  • Implications of COVID-19 pandemic on the global trade networks
    Vidya, CT; Prabheesh, KP
  • Is trade integration leading to regionalization?
    Vidya, CT; Prabheesh, KP; Sirowa, S