A Gravity Model Analysis for Trade between Cameroon and Twenty-Eight European Union Countries


The purpose of this empirical analysis is to investigate, based on gravity model, Cameroon’s bilateral trade flows with Twenty-Eight European Union countries signatories of the EU-Cameroon Free Trade Agreement (FTA) on the 15th of January 2009. Though the said Agreement entry into force day was scheduled for the 4th of August 2014, it is important to analyze the trade trends among these 29 countries. The research findings reveal that Cameroon’s bilateral trade with European Union countries is affected positively by economic size and per capita GDP, and influenced negatively by the distance between the trading partners. The result of basic the gravity model reveals that the Product of two countries’ GDPs has positive and significant impact on bilateral trade, indeed, a 1 percent point increase in product of the GDPs leads to increase in the bilateral trade volume of Cameroon with the concerned trade partners by 1.2808 percent and about the distance factor, 1 percent point increase in distance leads to decrease the bilateral trade volume of Cameroon by 2.0306 percent.

Share and Cite:

Doumbe, E. and Belinga, T. (2015) A Gravity Model Analysis for Trade between Cameroon and Twenty-Eight European Union Countries. Open Journal of Social Sciences, 3, 114-122. doi: 10.4236/jss.2015.38013.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Lindert, P.H. (1991) International Economics. 9th Edition, Homewood, Irwin.
[2] Thai Tri Do (2006) A Gravity Model of Trade between Vietnam and 23 European Countries. Department of Economics and Society, Dalarna University, Sweden.
[3] Krugman, P.R. and Maurice O. (2005) International Economics: Theory and Policy. 7th Edition, Addison-Wesley, Boston.
[4] Markusen, R.J., Melvin, R.J., Kaempfer, W. and Maskus, E.K. (1995) International Trade Theory and Evidence. McGrawHill, Boston.
[5] Dilanchiev, A. (2012) Empirical Analysis of Georgian Trade Pattern: Gravity Model. Journal of Social Sciences, 1, 75-78.
[6] Tinbergen, J. (1962) Shaping the World Economy: Suggestions for an International Economic Policy. The Twentieth Century Fund, New York.
[7] Frankel, J.A., Romer, D. and Cyrus, T. (1997) Regional Trading Blocs in the World Economic System. Institute for International Economics, Washington DC.
[8] Garman, G. and Debora, G. (1999) Economic Integration in the Americas: 1975-1992. Journal of Applied Business Research, 14, 1-12.
[9] Helpman, E.A.P.K. (1985) Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition and the International Economy. MIT Press, Cambridge, MA.
[10] Bergstrand. J.H. (1989) The Generalized Gravity Equation, Monopolistic Competition, and the Factor—Proportions Theory in International Trade.
[11] Bergeijk and Brakman (2010) The Gravity Model of International Trade: Advances and Applications. Cambridge University Press, Business & Economics.
[12] Bikker, J.A. (2009) An Extended Gravity Model with Substitution Applied to International Trade. DNB Working Paper No. 215, July 2009.
[13] Elshehawy, M., Shen, H. and Ahmed, R. (2014) The Factors Affecting Egypt’s Exports: Evidence from the Gravity Model Analysis. Open Journal of Social Sciences, 2, 138-148. http://dx.doi.org/10.4236/jss.2014.211020
[14] (2009) European Union Commission Press Release Database. Brussels. http://europa.eu/rapid/press-release_IP-09-55_en.htm
[15] European Union Commission Trade. http://ec.europa.eu/trade/policy/countries-and-regions/regions/central-africa/
[16] European External Action Service. http://www.eeas.europa.eu/cameroon/index_en.htm
[17] Pougala, J.-P. (2013) Cameroon-EPA: Why Cameroon Should Not Sign the Final Ape Agreement. http://pougala.org/why-cameroon-should-not-sign-the-final-ape-agreement/
[18] Batra, A. (2006) India’s Global Trade Potential: The Gravity Model Approach. Global Economic Review, 35, 327-361. http://dx.doi.org/10.1080/12265080600888090
[19] Rahman, M.M. (2003) A Panel Data Analysis of Bangladesh’s Trade: The Gravity Model Approach. Proceedings of the 5th European Trade Study Group Conference, Madrid, 11-13 September 2003, 1-54.
[20] Sharma, S.C. and Chua, S.Y. (2000) ASEAN: Economic Integration and Intra-Regional Trade. Applied Economics Le- tters, 7, 165-169. http://dx.doi.org/10.1080/135048500351726
[21] Eurostat Comext, Directorate-General for Trade of the European Commission. http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_122457.pdf

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.