Knowledge assets and bilateral-trade flows in ASEAN-5 countries: An extension of gravity panel data model

Mohd Fairuz Md. Salleh, Wan Sallha Yusoff, Norida Basnan, Tengku Suriani Tengku Yaacob

Research output: Contribution to journalArticle

Abstract

This study analyses knowledge asset as a determinant factor to bilateral trade flows in ASEAN-5 countries, namely, Singapore, Malaysia, the Philippines, Indonesia and Thailand from 2000 to 2015. The gravity model of trade is extended by incorporating the five components of knowledge assets, namely, national's market capital, financial capital, renewal and development capital, human capital and process capital as explanatory variables. The empirical investigation is based on pooled ASEAN-5 data and done using random effects and fixed effects models. The principle findings corroborate that knowledge assets are positive and have significant effects on bilateral trade flows in ASEAN-5 countries. The consideration of improving human capital and financial capital is vital given that it is a major contribution to the changes of bilateral trade in ASEAN. This study is open for further research on the negative and significant influences of process capital towards bilateral trade flows in ASEAN-5 countries.

Original languageEnglish
JournalJurnal Ekonomi Malaysia
Volume52
Issue number2
Publication statusPublished - 1 Jan 2018

Fingerprint

Bilateral trade flows
Knowledge assets
Gravity
Financial capital
Human capital
Fixed effects model
Gravity model
Singapore
Thailand
Determinant factors
Indonesia
Renewal
Capital markets
Malaysia
Empirical investigation
Random effects
Philippines
Bilateral trade

Keywords

  • ASEAN
  • Export
  • Gravity model
  • Intra-trade flows
  • Knowledge assets

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Knowledge assets and bilateral-trade flows in ASEAN-5 countries : An extension of gravity panel data model. / Md. Salleh, Mohd Fairuz; Yusoff, Wan Sallha; Basnan, Norida; Yaacob, Tengku Suriani Tengku.

In: Jurnal Ekonomi Malaysia, Vol. 52, No. 2, 01.01.2018.

Research output: Contribution to journalArticle

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AB - This study analyses knowledge asset as a determinant factor to bilateral trade flows in ASEAN-5 countries, namely, Singapore, Malaysia, the Philippines, Indonesia and Thailand from 2000 to 2015. The gravity model of trade is extended by incorporating the five components of knowledge assets, namely, national's market capital, financial capital, renewal and development capital, human capital and process capital as explanatory variables. The empirical investigation is based on pooled ASEAN-5 data and done using random effects and fixed effects models. The principle findings corroborate that knowledge assets are positive and have significant effects on bilateral trade flows in ASEAN-5 countries. The consideration of improving human capital and financial capital is vital given that it is a major contribution to the changes of bilateral trade in ASEAN. This study is open for further research on the negative and significant influences of process capital towards bilateral trade flows in ASEAN-5 countries.

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