Investor Presentaiton
Estimates
▸ As per the theory, if the partner countries' GDP increases by 1%, it brings a significant
positive impact on PNG's total trade which will increase by 0.34%.
▸ LNREMOTE is the assessment of the remoteness between partner countries; states
that the further away a partner country is to PNG, trade will decrease by .39%.
▸ The coefficient value of the Per Capita GDP Differential is negative (-.2427). This
reinforces other work in the body of literature that support the Linder hypothesis
(Linder, 1961) that similar countries with similar Per Capita GDP seems to trade more
in relative to dissimilar ones.
The coefficient of RTA is depicted at -.2205 any new RTA will not be beneficial to PNG
because it will reduce trade by .22%View entire presentation