Modeling the relationship between exports and imports of VietNam

Abstract

In this paper, the author employs the gravity model and the Hausman-Taylor estimator in tandem with a panel dataset of country pairs which includes 18 Vietnam’s main trading partners in the sample period from 1995 to 2011. This is for the purpose to model the possible relationship between exports and imports of the country. The empirical results show that there exists the bidirectional relationship between exports and imports of Vietnam, which might not be empirically analyzed in previous studies. In this paper, the author employs the gravity model and the Hausman-Taylor estimator in tandem with a panel dataset of country pairs which includes 18 Vietnam’s main trading partners in the sample period from 1995 to 2011. This is for the purpose to model the possible relationship between exports and imports of the country. The empirical results show that there exists the bidirectional relationship between exports and imports of Vietnam, which might not be empirically analyzed in previous studies.