Intra-ASEAN trade – Gravity model and spatial Housman-Taylor approach

SECO Working Paper 20/2017 by Quang Phung Duy, Tuan Pham Anh and Thu Nguyen Thi Xuan

ABSTRACT: This study examines determinants of intra-industry trade between Vietnam and ASEAN countries. By solving endogenous problems and applying a Hausman-Taylor model panel two-way dataset, we detect that export flows of Vietnam gravitate to neighbouring countries and those with similar GDP. More importantly, the research indicates the existence of spatial-lag interaction.