“Determinants of the Bilateral Trade Flows of North Macedonia – A Gravity Model Approach”
Journal
DIEM: Dubrovnik International Economics Meeting, Vol. 6, No.1, 2021
Date Issued
2021
Author(s)
DOI
10.17818/DIEM/2021/1.10
Abstract
The paper makes an in detail overview of the structure of the trade exchange
of goods of Macedonia and explores the determinants of its bilateral trade
flows using the gravity model. The analysis includes data on 40 trade
partners of Macedonia in the period from 2005-2019. The used variables in
the model are: GDP per capita difference, population, distance and relative
endowments of factors of production (capital, land and labour). In most of
the analyzed regressions the coefficients on determinants such as GDP per
capita difference and population are positive and their impact upon the
bilateral trade (as dependent variable) is statistically significant. Intensity of
Macedonian trade decreases in regard of the distance from a trade partner
and increases in partner’s size – the country tends to trade more with lager
countries. In our analysis we included three dummy variables such as:
membership in the EU and in CEFTA-2006 and common language. The
impact of the possible membership in the EU is clearly positive and
statistically significant. Being a candidate country for full EU membership,
Macedonia trades more with EU trade partners rather than with the
neigbouring countries, members of CEFTA-2006.
of goods of Macedonia and explores the determinants of its bilateral trade
flows using the gravity model. The analysis includes data on 40 trade
partners of Macedonia in the period from 2005-2019. The used variables in
the model are: GDP per capita difference, population, distance and relative
endowments of factors of production (capital, land and labour). In most of
the analyzed regressions the coefficients on determinants such as GDP per
capita difference and population are positive and their impact upon the
bilateral trade (as dependent variable) is statistically significant. Intensity of
Macedonian trade decreases in regard of the distance from a trade partner
and increases in partner’s size – the country tends to trade more with lager
countries. In our analysis we included three dummy variables such as:
membership in the EU and in CEFTA-2006 and common language. The
impact of the possible membership in the EU is clearly positive and
statistically significant. Being a candidate country for full EU membership,
Macedonia trades more with EU trade partners rather than with the
neigbouring countries, members of CEFTA-2006.
Subjects
File(s)![Thumbnail Image]()
Loading...
Name
Full paper DIEM so korekcii - skrateno.doc
Size
176.5 KB
Format
Microsoft Word
Checksum
(MD5):e554e398777c5cdd0070eb34d1aafc2a