Fukunari Kimura,  Keio University and Economic Research Institute for ASEAN and East Asia: The comparison between East Asia (EA) and the European Union (EU) in the development of network trade is an important topic to be investigated. Nguyen and Wu conducted a gravity equation exercise with the global trade data and with EA/EU regional export data (to the world), focusing on trade in intermediate goods based on Broad Economic Categories (BEC) categories. The careful introduction of variables for “economic mass” and “multilateral resistance” may be a methodological contribution to the literature.

The major findings from the regression analysis are as follows. First, with the global trade data, trade in intermediate goods is more sensitive to distance and further influenced by the economic mass of exporters and importers than the total trade. Although the sensitivity in distance has already been detected by many authors, including one of my papers with old-fashioned...

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