Trade potential of climate smart goods of Vietnam: An application of gravity model

This paper examines the trade potential of climate smart goods (CSG) of Vietnam. In particular, the study employs gravity model with panel data for bilateral trade between Vietnam and its 45 partners from 2002 to 2013 with an objective of identifying the determinants explaining Vietnam's trade...

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Bibliographic Details
Published inGeographica Pannonnica Vol. 20; no. 1; pp. 8 - 18
Main Authors Trung, Van, Thu, Anh
Format Journal Article
LanguageEnglish
Published University of Novi Sad, Department of Geography, Tourism and Hotel Management 2016
Subjects
climate smart goods (CSG)
gravity model
trade potential
Vietnam
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Summary:This paper examines the trade potential of climate smart goods (CSG) of Vietnam. In particular, the study employs gravity model with panel data for bilateral trade between Vietnam and its 45 partners from 2002 to 2013 with an objective of identifying the determinants explaining Vietnam's trade of climate smart products. The estimation results reveal that economic size, market size, distance, real exchange rate, border, and the quality of infrastructure of both Vietnam and its trading partners play a major role in bilateral trade of CSG. Additionally, the paper applies the method using speed of convergence and the estimated gravity equation to answer whether Vietnam has fully realized the potential trade of CSG. Accordingly, Vietnam has strong opportunity for trade expansion with 19 out of 45 countries in the scope of this paper.
ISSN:0354-8724
1820-7138
DOI:10.5937/GeoPan1601008T