Determinants of bilateral trade on gravity model: An empirical analysis of some countries for G20 and WJP Rule of Law Index

Abstract

This study contributes to the balance of trade/bilateral trade in the research field by examining the bilateral trade between South Korea to Czech Republic, France, Germany, Netherlands, Singapore, UK, USA, Belgium, Hungary, India, Italy, Malaysia, Thailand, Mexico, Russia Federation, Saudi Arabia, Turkey, Vietnam, Poland, Canada, Indonesia, Philippines, Australia, Hong Kong, China, Brazil The sample period is from 2000 to 2020. and 546 observations. -i- The objective of this research focuses on two major factors which play a crucial role in impacting bilateral trade between the countries. One of them is how much international relationships affect bilateral trade by G20 summits. On the other hand, if the country has a high-level rule of law and justice in side of country then it will affect the balance of trade significantly. I have done analysing by figure then apply several tests including pooled test, breusch pagan test, random effects, hausman test, fixed effects test and F-test with gravity model.