The Changing Trade Pattern of Emerging Economies: Gravity Model of Ghana's Trade Flow
11 Pages Posted: 15 Jan 2009
Date Written: December 8, 2008
This paper applies the augmented gravity model to study the changing pattern of Ghana's bilateral trade flows and to extract practical trade policy implications. Economic classification dummies are included in the gravity equation to characterize the peculiarity of South-South and North-South trade patterns. The result indicates that Ghana's trade especially the export sector has greater trading potential with the emerging and developing economies than the high income economies.
Keywords: augmented gravity model, trade potential, direction of bilateral trade
JEL Classification: F12, F14, F15
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