The spatial impact of neighbouring on the exports activities of COMESA countries by using spatial panel models

Abstract

In this paper, spatial panel models were used and the method for selecting the best model amongst the spatial fixed effects model and the spatial random effects model to estimate the fitting model by using the robust Hausman test for analysis of the exports pattern of the Common Market for Eastern and Southern African (COMESA) countries. And examine the effects of the interactions of the economic statistic of explanatory variables on the exports of the COMESA. Results indicated that the spatial Durbin model with fixed effects specification should be tested and considered in most cases of this study. After that, the direct and indirect effects among COMESA regions were assessed, and the role of indirect spatial effects in estimating exports was empirically demonstrated. Regarding originality and research value, and to the best of the authors' knowledge, this is the first attempt to examine exports between COMESA and its member countries through spatial panel models using XSMLE, which is a new command for spatial analysis using STATA.