UUM Electronic Theses and Dissertation
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The Gravity Model between Malaysia and selected EU countries

Nurul Humaira’ Aishah, Mohd Ali (2015) The Gravity Model between Malaysia and selected EU countries. Masters thesis, Universiti Utara Malaysia.

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This study applied the Gravity Model to estimate the factors influence the trade and
assess the trade potential between Malaysia and selected major trading partners of the EU countries. The model was estimated with a sample of five selected EU countries: Germany, United Kingdom, Netherlands, Belgium and France. A panel data analysis was used to disentangle the time invariant country-specific effect, and to capture the relationship between the relevant variables across time. The findings showed that the random effect was preferred over the fixed effect specification in the Gravity Model. Additionally, the variables, namely the gross domestic product, gross domestic products per capita, distance, and exchange rate were found to be the significant determinants in the bilateral trade flows. The trade potential is also found yet to be explored fully. Based on these findings, various policy implications and recommendations are suggested

Item Type: Thesis (Masters)
Supervisor : Baharudin, Amir Hussin
Item ID: 4952
Uncontrolled Keywords: Gravity Model, Bilateral trade, GDP, Exchange rate and Panel data
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 30 Sep 2015 01:54
Last Modified: 04 Apr 2021 08:53
Department: Othman Yeop Abdullah Graduate School of Business
Name: Baharudin, Amir Hussin
URI: https://etd.uum.edu.my/id/eprint/4952

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