Estimating Gravity Model in the Czech Republic: Empirical Study of Impact of IFRS on Czech International Trade

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F18%3AN0000015" target="_blank" >RIV/25940082:_____/18:N0000015 - isvavai.cz</a>

Result on the web

<a href="https://www.aauni.edu/data/files/sbornik-ifrs-verze2.pdf" target="_blank" >https://www.aauni.edu/data/files/sbornik-ifrs-verze2.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Estimating Gravity Model in the Czech Republic: Empirical Study of Impact of IFRS on Czech International Trade

Original language description

According to the gravity model, countries are trade relies on their proximity and relies on the size of their GDP. Negative influence is played by trade barriers and positive by common traditions and common political background. Big countries trade a lot between each other, e.g. the USA and Canada on the same continent or the USA and Germany in different continents. Smaller countries, like the Czech Republic, do not have such an impact on the scale of world trade. The size of exports/imports is influenced by the fact whether or not they are part of some trading bloc, e.g., the EU in Europe or NAFTA in America. Accounting rules, namely IFRS, are expected to be perceived as a positive influence on the world trade of a particular country and on a country's FDI (Foreign Direct Investment). In this paper, we test the influence on foreign trade and FDI of using the gravity model within the EU. The influence of IFRS is also tested, although we might expect that its influence will be smaller than that of other factors. Contrary to our expectations, we have found that the influence of IFRS is not insignificant and is more pronounced after the year 2010 which coincides with the change of local regulations. This finding establishes an interesting signal relating to perceiving the increasing quality of the Czech economic environment including accounting regulations.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

IFRS: Global Rules and Local Use: Proceedings of the 6th International Scientific Conference

ISBN

978-80-906585-7-8

ISSN

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e-ISSN

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Number of pages

13

Pages from-to

159-171

Publisher name

Anglo-americká vysoká škola, z.ú.

Place of publication

Praha

Event location

Praha

Event date

Oct 11, 2018

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

000461826900015