Abstract
This chapter examines empirical relationships, analyses determinants of CFGT trade in the precrisis period and predicts bilateral trade flows using the gravity model in Asia. Income level, geographical distance and developmental position of both trading partners and country characteristics, economic policy reforms and available infrastructure are important determinants of CFGT trade and its sub-categories. The total estimated potential exports of CFGT within Asia and the European Union were around $32 billion US dollar (USD) and $10 billion US dollar in 2008, respectively. Estimating potential trade gap, this chapter predicts the value of trade opportunity of CFGT in Asia and identifies potential trading partners within and outside Asia.
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- 1.
It remains insignificant in all six models (see Table 8.1).
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An increase in bilateral trade is explained as transportation cost decreases.
- 3.
Literature (Disdier and Head 2008, Balassa 1966, Balassa and Bauwens 1987) supports these observations.
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Export and import trading partners could be different.
References
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———. 2014b. Climate Change: An Emerging Trade Opportunity in South Asia. South Asian Journal of Macroeconomics and Public Finance 3 (2): 221–239.
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World Bank. 2008. International Trade and Climate Change: Economic, Legal and Institutional Perspectives, the World Bank. New York: Oxford University Press.
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Dinda, S. (2019). Potential Business of Climate Friendly Goods and Technologies in Asia. In: Climate Friendly Goods and Technologies in Asia. SpringerBriefs in Environmental Science. Springer, Cham. https://doi.org/10.1007/978-3-030-02475-8_8
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DOI: https://doi.org/10.1007/978-3-030-02475-8_8
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