China-us border effect of agricultural trade using gravity model

Abstract

Two border effect models capturing the characteristics of agricultural trade based on the Gravity Model are put forward to make a study on China-US border effects in the sector of agricultural trade. Different methods are used to check the robustness of the models. Applying the panel data covering 1987-2005, the empirical results show that the border effects of China-US exist with a great magnitude and tend to drop over time. They differ greatly from the direction of the international trade. Linear model in log-form can well explain the border effects of China-US agricultural trade. © 2009 Springer Science+Business Media, LLC.