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Social Development And International Trade In Central Europe

Author

Listed:
  • Andrzej Cieslik

    (University of Warsaw, Poland)

  • Jan Jakub Michalek

    (University of Warsaw, Poland)

  • Jerzy Mycielski

    (University of Warsaw, Poland)

Abstract

In this paper we study the impact of social development on international trade in Central and Eastern Europe using the generalized gravity model. Many previous empirical studies which explored the determinants of trade flows, concentrated only on traditional gravity variables, such as the size of trading partners, factor abundance, technology differences or distance. In our study, in addition to the standard set of gravity variables, we examine the role of aggregate social develop-ment indicators such as Human Development Index and its components. Our results show that both aggregate and disaggregate measures of social development affect the volume of international trade flows. In particular, the education indexes seem to be positively related to bilateral trade flows.

Suggested Citation

  • Andrzej Cieslik & Jan Jakub Michalek & Jerzy Mycielski, 2012. "Social Development And International Trade In Central Europe," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 7(2), pages 7-19, June.
    • Handle: RePEc:pes:ierequ:v:7:y:2012:i:2:p:7-19
    DOI: 10.12775/EQUIL.2012.008
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    References listed on IDEAS

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    2. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
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    4. James R. Markusen, 2021. "Explaining the Volume of Trade: An Eclectic Approach," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 9, pages 177-186, World Scientific Publishing Co. Pte. Ltd..
    5. Gustav Ranis & Frances Stewart, 2005. "Dynamic Links between the Economy and Human Development," Working Papers 8, United Nations, Department of Economics and Social Affairs.
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    8. Grosfeld, Irena & Senik, Claudia, 2010. "The emerging aversion to inequality - Evidence from subjective data," CEPREMAP Working Papers (Docweb) 1006, CEPREMAP.
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    10. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
    11. Bergstrand, Jeffrey H, 1990. "The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1216-1229, December.
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    Cited by:

    1. Rangan Gupta & Giray Gozgor & Huseyin Kaya & Ender Demir, 2019. "Effects of geopolitical risks on trade flows: evidence from the gravity model," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 515-530, December.
    2. Andrzej Cieslik, 2014. "Globalization And Human Development In Post-Transition Countries: Empirical Evidence From Panel Data," Oeconomia Copernicana, Institute of Economic Research, vol. 5(3), pages 7-27, September.

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    More about this item

    Keywords

    social development indices; bilateral trade flows;

    JEL classification:

    • F1 - International Economics - - Trade

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