An Analysis of the Determinants of U.S. Imports Using a Gravity Model Approach

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Title: An Analysis of the Determinants of U.S. Imports Using a Gravity Model Approach
Authors: Ma, Yuan
Date: 2015-04-30
Abstract: As the primary export target of many countries, the trade pattern of U.S. has radically changed with globalization. The U.S. imports are not only influenced by cost of goods, but also determined by other factors such as culture, distance, and social network with other countries. This paper outlines key determinants of U.S. imports by using a gravity panel data model approach. This paper extends the basic gravity model using several variables in order to find more plausible determinants of U.S. imports. Pooled ordinary least squares, fixed effect and random effect approaches are estimated. Several model selection tests lead us to accept the results of random effect model as the most appropriate. The estimation results show that economic size of trading partners, geographical distance and trade openness of exporting countries have significant impact on U.S. imports. The results also demontrate that in recent years, U.S. has significantly increased its imports from SARRC members and East Asia with respect to other overseas countries.
URL: http://hdl.handle.net/10393/32368
CollectionScience économique - Mémoires // Economics - Research Papers
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