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A gravity model analysis factors influencing rice export in India, Thailand and Vietnam between 2000 and 2016

By Nguyen Minh Hong Ngoc (VNP 24)

Supervisor: Dr. Pham Khanh Nam

Abstract:

The analysis applied the gravity model in order to determine significant factors affecting rice export values of the three largest rice exporters in the world including India, Thailand and Vietnam. Meanwhile, the gravity model is considered as the success model in estimating the bilateral trade of a specific commodity market. The empirical model uses Tobit model with panel data for 222 importing countries for the period 2000-2016. The results reveled that rice trade were affected positively on GDP per capita of exporting countries since higher income promotes exports. The distance variable between a pair- countries has negative influence on exports, and the price of rice exports did not show to be to be positive to rice trade. The degree of openness of a nation together with participation in many different the free trade agreements increase exports while the trade across border with adjacent countries support to remarkably develop rice export values.

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