Publication: Gravity Model Approach for Exports Analysis of Republic of Moldova Between 2010 and 2021
Date
Authors
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ASEM
Abstract
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MIGOVA, Xenia. Gravity Model Approach for Exports Analysis of Republic of Moldova Between 2010 and 2021. European Journal of Regional Studies. December 2022, vol. 8, issue 2, pp. 158-167. ISSN 2537-6179, E-ISSN 1857-436X.
This paper explores the effects of determinants of bilateral trade on export flows of Republic of Moldova during last decade in the framework of gravity model. Being a structural model with solid theoretical foundations it proves that markets are linked and changes in one partner country can cause changes in trade performance of another partner country. The variables include trade partner’s GDP, economic distance, and Association Agreement membership. Specifically, the model relies on a fixed effect panel estimation for explaining the export flows of the Republic of Moldova. In order to check the viability of the gravity equation, there are executed statistical tests. Based on the analysis, there are provided policy recommendations for trade policy. JEL: F17; DOI: https://doi.org/10.53486/2537-6179.8-2.11
This paper explores the effects of determinants of bilateral trade on export flows of Republic of Moldova during last decade in the framework of gravity model. Being a structural model with solid theoretical foundations it proves that markets are linked and changes in one partner country can cause changes in trade performance of another partner country. The variables include trade partner’s GDP, economic distance, and Association Agreement membership. Specifically, the model relies on a fixed effect panel estimation for explaining the export flows of the Republic of Moldova. In order to check the viability of the gravity equation, there are executed statistical tests. Based on the analysis, there are provided policy recommendations for trade policy. JEL: F17; DOI: https://doi.org/10.53486/2537-6179.8-2.11
Keywords
gravity model, panel data, Republic of Moldova, export, association agreement