A Gravity Model Analysis of international Copper trade.

Bc. Moses Kasolo, BSc

Diplomová práce

Abstract:

In the thesis titled "A Gravity Model Analysis of International Copper Trade," I conducted a thorough investigation into the factors that influence the international trade of copper by employing the gravity model of trade. The analysis explores several key variables, such as GDP of trading partners, distance between countries, population size, shared borders, common languages, and trade agreements, to determine their impact on copper trade volumes. The findings reveal that the GDP of both trading partners has a strong and statistically significant positive relationship with the copper trade. This indicates that as the GDP of either trading partner increases, the copper trade volume between them also grows, underlining the importance of economic strength in fostering trade relationships. Conversely, the distance between trading partners, population size, shared borders, and common languages did not display statistically significant relationships with copper trade volumes. This suggests that these factors might not be as crucial in determining copper trade as previously assumed. One notable finding of the study is the positive and statistically significant relationship between trade agreements and copper trade. This indicates that when countries enter into trade agreements, it can have a substantial impact on the trade of copper, likely due to reduced barriers and increased cooperation. Overall, the thesis sheds light on the key drivers of international copper trade, emphasizing the role of economic strength and trade agreements in shaping trade dynamics, while also challenging the traditional assumption that factors like distance, population size, shared borders, and common languages are crucial determinants of copper trade volumes.

Keywords

Gravity Model, International Trade, Panel Data, Trade Agreements, Gross Domestic Product (GDP), Copper Trade, Hausman Test, Breusch Pagan Test, Copper Ore

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 29. 3. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 31. 5. 2023
• Vedoucí: doc. Ing. Petr Procházka, MSc Ph.D.
• Oponent: Vladimír Hönig, externi

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
Economics and Management