We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Market Integration and Energy Trade Efficiency: An Application of Malmqvist Index to Analyse Multi-Product Trade

Market Integration and Energy Trade Efficiency: An Application of Malmqvist Index to Analyse Multi-Product Trade
Date:
4 November 2014
Category:
Energy, Trade
Authors:
Yu Sheng, Yanrui Wu, Xunpeng Shi, Dandan Zhang
Tags:

Print Article:

Abstract


This paper uses the data envelope analysis method to investigate the Malmquist index-based gravity relationship between bilateral energy trade flows and their determinants throughout the world. Using a balance panel data of 40 countries between 1995 and 2008, this paper shows that market integration will increase energy trade by improving trade efficiency between trade partners, though allowing for a flexible substitution between different energy products tends to weaken these effects. This result highlights cross-product substitution and its implications for the aggregate energy trade pattern, providing insights on the importance of prioritising product-specific trade facilitating policies.

ERIA-DP-2014-20

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Energy, EV, Electric Vehicle, EV battery, ASEAN
28 March 2024
Editor(s)/Author(s): Naoko Doi, Alloysius Joko Purwanto, Shigeru Suehiro, Soichi Morimoto, Akira Takamine, Yasuo Kawada, Koichi Sasaki, Yuhji Matsuo
In East Asia Summit (EAS) countries, recent progress in electrifying the transport sector[...]
Trade, Trade Policy, COVID-19, Dynamic Spillovers, Sino-US Trade Friction, United States, Japan, Republic of Korea
21 March 2024
Editor(s)/Author(s): Chien-Chiang Lee, Farzan Yahya
In this paper, we examine the spillover and connectedness between[...]