The Impact of Participating in the Regional Comprehensive Economic Partnership (RCEP) Agreement and Potential Export Markets for Vietnamese Rice: An Application of Augmented Gravity Model

Jadhav Jadhav () and Trinh Thanh Thao ()
Additional contact information
Trinh Thanh Thao: Cuu Long Delta Rice Research Institute, Tan Thanh Commune, Thoi Lai District, CanTho City, Vietnam

Journal of International Commerce, Economics and Policy (JICEP), 2024, vol. 15, issue 02, 1-22

Abstract: In this study, we investigate the potential effects of the Regional Comprehensive Economic Partnership (RCEP) agreement on Vietnam’s rice exports from 2000 to 2016. For this analysis, we employ the panel data augmented gravity model with some modifications. The estimated results suggest a positive relationship between Vietnam’s per capita export and the capita real gross domestic product (GDP) of the importer, Vietnam’s rice production, export price, and ASEAN dummy. We confirm that there is a negative relationship between Vietnam’s per capita rice export value and import country agricultural land and import tariffs. Additionally, this paper forecasts Vietnam’s rice export value per capita at each market in RCEP partners by using the autoregressive model. Our forecast results show that among RCEP members, Vietnam has potential markets if import tariff reductions are lowered in Singapore, Brunei, Korea, Japan, and Malaysia. To reap the benefits of rice exports’ potential, Vietnam must move from low-grade and cheap rice to high-quality rice production instead of expanding rice production and exports with the following implications: changing its present rice trading partners to potential markets and adopting market-oriented policies to meet the international demand and to increase the export elasticity of rice.

Keywords: Regional Comprehensive Economic Partnership (RCEP); Rice Export; Gravity model; tariff reduction; potential markets (search for similar items in EconPapers)
JEL-codes: F10 F12 F13 F15 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1793993324500042
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jicepx:v:15:y:2024:i:02:n:s1793993324500042

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1793993324500042

Access Statistics for this article

Journal of International Commerce, Economics and Policy (JICEP) is currently edited by Ramkishen S. Rajan

More articles in Journal of International Commerce, Economics and Policy (JICEP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().