Purpose: The purpose of this paper is to investigate if distance is a friction to Pacific Island countries (PICs) trade with the USA. Design/methodology/approach: A gravity model is used to estimate trade flows using time-series cross-country data for period 1981-2005. Findings: The empirical findings utilizing panel data estimation procedures here provide confirmation that distance imposes significant regressive effect on PICs exports to the USA. Originality/value: This paper expresses the view that distance can impose regressive effects on PICs commodity exports to the USA.
- International trade
- Pacific Region
- United States of America
ASJC Scopus subject areas
- Industrial relations
- Economics, Econometrics and Finance(all)
- Political Science and International Relations