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

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

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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Počet stran výsledku

13

Strana od-do

159-171

Název nakladatele

Anglo-americká vysoká škola, z.ú.

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

11. 10. 2018

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000461826900015