Improving Agricultural Export Policies in Developing Countries: An Application of Gravity Modelling in the Case of Vietnam’s Fishery Export

Manh Hung DoSang Chul Park

DOI 10.7160/aol.2020.120402
No 4/2020, December
pp. 15-27

Do, M. H. and Park, S. C. (2020) “Improving Agricultural Export Policies in Developing Countries: An Application of Gravity Modelling in the Case of Vietnam’s Fishery Export", AGRIS on-line Papers in Economics and Informatics, Vol. 12, No. 4, pp. 15-27. ISSN 1804-1930. DOI 10.7160/aol.2020.120402.

Abstract

This paper investigates the determinants of fishery export from Vietnam using a structural gravity modelling. Taken additional trade-related variables from the World Bank’s open data into the estimation of the gravity model, this research will be the first trial to examine the impacts of these variables on export of fishery products and to propose policy implications for stimulating export in Vietnam. The empirical results show that each 1% reduction of export costs might increase approximately 3.7% of the export value of fishery products. This finding is critical because the current administrative system for export of agricultural commodity in Vietnam consists of many stages and includes a long period of animal quarantine inspection, document checking, and customs clearance that might cause additional export costs. Therefore, policies aiming at reducing the costs of border and documentary compliance for export will be significant to stimulate export in developing countries as Vietnam.

Keywords

Fishery export, export policy, free trade agreement, gravity model, random effect estimation, Vietnam.

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