Martínez-Zarzoso, I. and Nowak-Lehmann, F. (2003) Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows. Journal of Applied Economics, 6, 291-316.
https://doi.org/10.1080/15140326.2003.12040596

has been cited by the following article:

• TITLE: Trade Flows of South Korea with MENA Countries

  AUTHORS: Abir Abdelli

  KEYWORDS: International Relations, International Trade, Gravity Model, Gravity Equation, Panel Estimation Data, Pooled Ordinary Least Squares OLS, Fixed Effects FE, Random Effects RE, South Korea, MENA Countries

  JOURNAL NAME: Open Access Library Journal, Vol.11 No.4, April 30, 2024

  ABSTRACT: The purpose of this paper is to empirically analyze the trade flows of South Korea with the Middle East and North African MENA countries, based on the gravity model, and to suggest possible techniques to increase Korean trade by pointing out the essential variables determining trade flows. The gravity model presumes that trade flows between two countries are positively linked to their population and economic size. We analyze pooled Ordinary Least Squares OLS, Fixed effects FE, and Random effects RE estimation methods to examine selected variables’ role in Korean-MENA trade growth. The findings show that distance does diminish trade. By analyzing a modified gravity equation of panel data estimations for Korean trade with the MENA region over 28 years, we find that for some regressions, the variables of oil rents of GDP and trade openness have a significant impact on Korean-MENA trade flows.