What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Maciejewski, Marek; Wach, Krzysztof

doi:10.14254/2071-8330.2019/12-1/10

Cited by 25 publications

(13 citation statements)

References 41 publications

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“…It is unequivocally confirmed that the export in the technologically advanced products is the most demanded way of competing in the international markets (Gökmen & Turen 2013, Maciejewski & Wach 2019. The relationship between the R&D intensity and the export performance is not a new research issue (i.e.…”

Section: Literature Reviewmentioning

confidence: 91%

Competitiveness of high-tech sectors in the European Union: A comparative study

Braja¹

2019

Journal of International Studies

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In the 20th century the idea of competitiveness flourished and became one of the most popular buzzwords in economic debate, both among researchers and economic practitioners. Cutting-edge technologies and various innovations of today are perceived as the major factors of economic success, either on macro or microlevel. This paper aims at examining the relationship between R&D expenditures and export performance in high-tech sectors and the competitive advantages in these sectors in 16 European Union countries. In most of the analysed countries, the research found a dependence between the scale of R&D expenditures and the countries' export performance in the hightechnology sectors. To achieve the predefined research objective, the authors used the correlation coefficients. The results of the study proved that R&D expenditures are strictly correlated with export performance of the examined countries. Moreover, the correlation between R&D expenditures and the Balassa RCA index confirms that the R&D expenditures in the high-tech are correlated with the competitive advantages in the Balassa meaning. The results of the performed analysis are largely consistent with theoretical and empirical literature economies' competitiveness and the impact of R&D expenditures and innovations.

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Section: Literature Reviewmentioning

confidence: 91%

Competitiveness of high-tech sectors in the European Union: A comparative study

Braja¹

2019

Journal of International Studies

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“…There are several studies using gravity models for explaining international trade pattern of the CEE countries during 1990s (as mentioned in Paas, 2000or Pravorne et al, 2003. During 2000s, a new range of studies is developed under the new prospects of EU adhesion (see, for example, Bussi ere et al, 2005;Dragutinovi c-Mitrovi c & Bjeli c, 2015;Stoj ci c et al, 2018;Maciejewski & Wach, 2019). Our study focuses on Romania's trade relations under the expansion of GVCs and in this context, it checks for potential negative effects of the COVID crisis.…”

Section: Literature Reviewmentioning

confidence: 99%

An empirical analysis using panel data gravity models and scenario forecast simulations for the Romanian exports in the context of COVID-19

Davidescu

Popovici

Strat

2021

Economic Research-Ekonomska Istraživanja

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The paper focuses on the trade performance of Romania, a representative country for the Central and Eastern European region, strongly connected with its European partners in global value chains and thus affected by any change in these countries' relationships with the rest of the world in general and China in particular. Using panel data gravity models for the 2008-2019 period, we find that Romania's exports are significantly influenced by the demand of its major trade partners in the EU, and imports from China and the rest of the world. In addition, exports are vulnerable to the effectiveness of the government in relation to the other countries, corruption control and cultural values such as collectivism. We also assess the capacity of Romanian exports to regain their ascending trend displayed before the COVID-19 pandemic by using simulation forecasting scenarios based on the shape of the economic recovery and the type of shock transmission across economies. We observe a sharp decrease in 2020 followed by an important recovery in 2021 in a V-shape scenario and uniform transmission of the pandemic shock in the internal demand and in the foreign trade, or followed by a very slow recovery in 2021 (in a U-shape scenario and non-uniform transmission type in the two previously mentioned elements), especially when the global relation with rest of the world is included.

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“…In order to do this, I used the gravity model of foreign trade, whose idea referring to Newton's gravitation law assumes that the value of trade exchange between two countries is proportional to the product of income of those countries, thus, to their masses, and inversely proportional to the distance between them, which translated into the costs of transport, diminishing the attractiveness of trade exchange (Tinbergen, 1962). The concept has become a popular instrument of trade modelling, mainly due to the possibility to develop a formula with new variables for the needs of testing their impact on trade streams (Maciejewski & Wach, 2019). In the group of model variables explaining bilateral trade of the European Union countries I decided to include the measure of similarity of their demand structure based on consumption expenses classified according to COICOP (COICOP demand similarity, COICOP_DSil).…”

Section: Table 1 Correlation Coefficient Between Changes In the Distmentioning

confidence: 99%

The Similarity of the Demand Structure as a Determinant of the Commodity Structure of Bilateral Trade in the European Union Countries

Maciejewski¹

2019

EBER

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The aim of the article is to determine the influence of the process of convergence of the demand structure in the European Union countries on the share in the export structure of groups of products distinguished due to the share of the technological factor. Research Design & Methods: A dynamic analysis of the similarity of the demand structure of the EU countries was made in the article. The interdependence between the convergence of the demand structure and the reduction of distance in the economic development level was presented. An analysis of the commodity structure of bilateral trade of the EU countries was conducted and the gravity model of foreign trade was used. Findings: Similarity in the demand structure of trade partners influences the commodity structure of trade between them. The effects of this influence are different for trade relations of countries which are on a different level of economic development. Implications & Recommendations: Conclusions drawn from the article are useful for the economic policy and support for exports. The research is worth continuing and completing with methods enabling the reference to more complex dependencies influencing the process of the demand structure convergence. Contribution & Value Added: The article fills the research gap with regard to determining the influence of the alignment of the level of economic development on the convergence of the demand structure and referring this process to changes in the commodity structure of exports. Article type: research article

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What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Cited by 25 publications

References 41 publications

Competitiveness of high-tech sectors in the European Union: A comparative study

Competitiveness of high-tech sectors in the European Union: A comparative study

An empirical analysis using panel data gravity models and scenario forecast simulations for the Romanian exports in the context of COVID-19

The Similarity of the Demand Structure as a Determinant of the Commodity Structure of Bilateral Trade in the European Union Countries

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