A gravitational model extended by institutional and cultural factors for Colombian foreign trade

Abstract: Gravitational models are currently a commonly used methodology to analyze the behavior of countries' trade flows. These studies typically seek to measure the impact of distance and the size of economies as factors that increase or decrease the propensity to trade between countries. Instead of using the traditional model, this paper introduces two distance variables which are built as modernity factors of culture and productive and institutional apparatus that give some evidence the importance of the economic and institutional stability of the countries to favor trade flows. The new model is tested using historical data of Colombia foreign trade between 1995 and 2015 (which is the most updated year publicly available).

How to cite this paper

 Suárez, V., Montoya-Torres, J & Sepúlveda-Rojas, J. (2021). A gravitational model extended by institutional and cultural factors for Colombian foreign trade.Management Science Letters , 11(9), 2313-2322.

Refrences

Ahcar, J., & Siroën, J. (2017). Deep integration: Considering the heterogeneity of free trade agreements. Journal of Eco-nomic Integration, 32(3), 615-659.
Arndt, S. W. (2007). Doha Development Round: Reaching Beyond Trade Liberalization. Pacific Economic Review, 12(3), 381–394.
Arribas, I., Pérez, F., & Tortosa-Ausina, E. (2011). A New Interpretation of the Distance Puzzle Based on Geographic Neu-trality. Economic Geography, 87(3), 335-362.
Baier, S. L., Bergstrand, J. H., & Egger, P. (2007). The New regionalism: Causes and consequences. Economie Internatio-nale, 1(109), 9-29.
Bary, P., & Setyodewanti, R. (2016). Variation of regional trade agreement impact across member countries: The case of Southeast Asia. Journal of Applied Economic Sciences, 6 (41), 379-384.
Bermeo, M., & Oh, J. (2016). Patterns and potentials of Peru's international trade: A gravity approach. Regional and Sec-toral Economic Studies, 16(2), 41-55.
Blanes, J. V., & Milgram, J. (2010). Impact of trade liberalization on export of Morocco by region. Revista de Economia Aplicada, 18(52), 63-90.
Cameron, C., & Trivedi, P. K. (2005). Microeconometrics Methods and Aplications. New York: Cambridge University Press.
Chen, C., Mai, C., & Shih, C. (2007). China and East Asia: An Appraisal of Regional Economic Integration. Journal Eura-sian Geography and Economics, 48(3), 320-340.
Comunidad Andina de Naciones (2018). Quiénes Somos: Comunidad Andina de Naciones. Obtenido de Comunidad Andi-na de Naciones : http://www.comunidadandina.org/Seccion.aspx?id=195&tipo=QU&title=resena-historica
Daniels, J., Radebaugn, L., & Sullivan, D. (2010). Negocios Internacionales. México: Pearson Education.
Dragutinović-Mitrović, R., & Bjelić, P. (2015). Trade regimes and bilateral trade in the EU enlargement process: Focus on the Western Balkans. Acta Oeconomica, 65(2), 249-270.
Eissa, N. (2010). GCC economic integration in the world economy and it's role in the current economic crisis. Knowledge Management and Innovation: A Business Competitive Edge Perspective (pp. 1513-1522). El Cairo: Elsevier.
García, E., Navarro, M., & Gómez, E. (2013). The gravity model analysis: An application on MERCOSUR trade flows. Journal of Economic Policy Reform, 16(4), 336-348.
Greene, W. H. (1999). Análisis econométrico. Madrid: Pearson Education.
Kalmanovitz, S. (2015). Breve Historia Económica de Colombia. Bogota : Utadeo.
Kandogan, Y. (2007). Sensitivity of international blocs' trade effect to alternative specifications of the gravity equation. Journal of Applied Economics, 10(2), 337-360.
Kohl, T. (2014). Do we really know that trade agreements increase trade? Review of World Economics, 150(3), 443-469.
Kreinovich, V., & Sriboonchitta, S. (2018). Quantitative Justification for the Gravity Model in Economics. Studies in Computational Intelligence, 753, 214-221.
Leusin, J. S., & de Azevedo, A. (2009). The border effect in Brazilian regions: A gravity model approach [O efeito fron-teira das regiões Brasileiras: Uma aplicação do modelo gravitacional]. Revista de Economia Contemporanea, 13(2), 229-258.
Madhusoodanan, P. (2010). An empirical examination of trade flows in the SAARC region. International Journal of Busi-ness and Globalisation, 5(3), 273-279.
Martínez, I., Felicitas, L., & Horsewood, N. (2009). Are regional trading agreements beneficial?: Static and dynamic panel gravity models. North American Journal of Economics and Finance, 20(1), 46-65.
Ministerio de Comercio, Industria y Turismo. (23 de Mayo de 2018). Acuerdos Vigentes. Obtenido de Mincit: http://www.tlc.gov.co/publicaciones/5398/acuerdos_vigentes
World Trade Organization (2018). A cerca de la OMC. Obtenido de Historia del sistema multilateral de comercio: https://www.wto.org/spanish/thewto_s/history_s/history_s.htm
Ortiz Quevedo, C. H., & Vásquez Castro, L. M. (2007). Aprendizaje Manufacturero, Dependencia Tecnológica y Creci-miento Económico: El Caso Colombiano. Revista Sociedad y Economía, 12, 10-27.
Robledo, S., Osorio, G. A., & López, C. (2014). Networking en pequeña empresa: una revisión bibliográfica utilizando la teoría de grafos. Revista Vínculos, 11(2), 6-16.
Rodrik, D. (2000). Cómo hacer que la apertura funcione . Bogota: Tercer Mundo Editores.
Tinbergen, J. (1962). Shaping the World Economy. New York: Twentieth Century, 27-30.
Vijil, M. (2014). Aid for trade effectiveness: Complementarities with economic integration. World Economy, 37(4), 555-566.
Villar, L., & Esguerra, P. (2006). El Comercio Exterior Colombiano en el Siglo XX. En M. Urrutia, & J. Robinson, Histo-ria Económica de Colombia en el Siglo XX (págs. 1-53). Bogota: Banco de la República.
Wooldridge, J. M. (2016). Introductory Econometrics. Boston: Cengage Learning.