The importance of quality in explaining trade flows: a gravity analysis of pangasius export from Vietnam

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Gravity models identify drivers of trade flows and thereby provide knowledge on the types of quality of market products to export to. The existing literature, however, does not consider quality of a market product differentiation that might be driven by different factors and that targets a specific type of market product. The purpose of this study is to identify the importance of a product quality and its influential drivers for international trade. The gravity model was separately applied in two different quality products using the price of transactions for pangasius between two countries relative to the average yearly export price as an indicator of a quality product. Export data from Vietnam to 46 countries during the period of 2007-2013 were used to identify the drivers and the results indicate that gross domestic product and population of importing countries are the most influential drivers for pangasius export. Results also indicate that the importing countries have a preference for high-quality product. In that case, distance and tariff rate are also influential drivers for high-quality product. This study may guide the potential exporting countries to identify which market to penetrate for higher profit.
OriginalsprogEngelsk
TidsskriftJournal of the Patuakhali Science And Technology University (JPSTU)
Vol/bind13
Udgave nummer1&2
Antal sider12
ISSN1996-4501
StatusUdgivet - 2023

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