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Evidence on Euromediterranean Trade Integration: The Case of German Olive Oil Imports

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  • Kavallari, Aikaterini
  • Maas, Sarah
  • Schmitz, P. Michael
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    Abstract

    The deepening of the Barcelona Agreement and the discussions of the creation of a Mediterranean Union has awakened the interest of the non-EU Mediterranean countries to expand their exports to the European markets. This study analyses the factors that influence the German imports of olive oil by employing a gravity model. The results of two random-effects models corrected for serial correlation and heteroskedasticity suggest that being a Mediterranean Partner Country of the European Union has the highest impact on trade flows to Germany, thus supporting further Euromediterranean trade integration. Moreover, olive oil exports to Germany are positively related to the existence of direct marketing channels and to tourism. Therefore, these valuables should be explored more in the future by the Mediterranean countries so as to boost their exports. Die Vertiefung des Barcelona-Abkommens und die Diskussion über die Gründung einer Mediterranen Union haben das Interesse der mediterranen Drittländer geweckt, ihre Exporte an den europäischen Markt auszubauen. Diese Studie analysiert daher die Determinanten der deutschen Olivenölimporte an Hand eines Gravitationsmodells. Im Mittelpunkt steht hierbei die Frage, ob der Abschluss des Barcelona-Abkommens zu einer Stimulierung des Handels zwischen Deutschland und den mediterranen Drittländern geführt hat. Die Ergebnisse zweier Random-Effects- Modelle, korrigiert für Autokorrelation und Heteroskedastizität, zeigen, dass die Zugehörigkeit zu den mediterranen Partnerländern den stärksten Einfluss auf die Exporte nach Deutschland hat und unterstützen somit eine weitere Handelsintegration im euromediterranen Raum. Zudem ist der Handel mit Deutschland positiv mit dem Bestehen von direkten Absatzwegen und Tourismus verknüpft. Diese Einflussfaktoren sollten in Zukunft stärker von mediterranen Ländern genutzt werden, um ihre Olivenölexporte nach Deutschland auszuweiten.

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    Bibliographic Info

    Article provided by Journal of International Agricultural Trade and Development in its journal Journal of International Agricultural Trade and Development.

    Volume (Year): 59 (2010)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:joiatd:145221

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    Web page: http://www.ndsu.nodak.edu/ndsu/miljkovi/

    Related research

    Keywords: Euromediterranean trade integration; gravity model; olive oil; Germany; euromediterrane Handelsintegration; Gravitationsmodell; Olivenöl; Deutschland; International Relations/Trade;

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    1. Felicitas Nowak-Lehmann & Dierk Herzer & Inmaculada Martinez-Zarzoso & Sebastian Vollmer, 2007. "The Impact of a Customs Union between Turkey and the EU on Turkey's Exports to the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 719-743, 09.
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    9. Anania, Giovanni & Pupo D'Andrea, Maria Rosaria, 2008. "The Global Market for Olive Oil: Actors, Trends, Policies, Prospects and Research Needs," Working Papers 6109, TRADEAG - Agricultural Trade Agreements.
    10. Vlontzos, George N. & Duquenne, Marie-Noelle, 2007. "Evolution of trade flows for sheep milk cheese: an empirical model for Greece," 105th Seminar, March 8-10, 2007, Bologna, Italy 7884, European Association of Agricultural Economists.
    11. Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 533-49, October.
    12. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, 05.
    13. Garcia-Alvarez-Coque, Jose Maria & Martí-Selva, Maria-Luis, 2006. "A Gravity Approach to Assess the Effects of Association Agreements on Euromediterranean Trade of Fruits and Vegetables," MPRA Paper 4124, University Library of Munich, Germany.
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