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Focusing on the components of both solar photovoltaic technology and wind energy technology and using the gravity model approach with panel data, this study empirically investigated the determinants of bilateral trade in renewable energy goods among ASEAN countries as well as with China, Japan, and South Korea for the period 2012–2019, and also identified China’s export efficiency and export potential. The results showed that the economic sizes of both the exporting and importing countries, the economic freedom of the exporter, and trade agreements and membership of common trade areas sign...

Many countries try to bring down trade costs by striking free trade agreements, forming currency unions or joining the WTO. But when trade costs fall, how much does trade increase? This column finds that the impact depends on how intensively countries trade. Falling trade costs boost trade between countries with initially ‘thin’ trading relationships where the scope for growth