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A Gravity Model for Exports from Iceland

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  • Helga Kristjánsdóttir

    (University of Iceland)

Abstract

This paper applies a gravity model to examine the determinants of Icelandic exports. The model specifications tested allow for sector and trade bloc estimation. Also, a combination of an export ratio and a gravity model is tested, as well as marine product subsamples. The estimates are based on panel data on exports from 4 sectors, to 16 countries, over a period of 11 years. Estimates indicate that the size and wealth of Iceland does not seem to matter much for the volume of exports, not even when correted for the country’s small size. Finally, results indicate that trade bloc and sector effects matter and that marine products vary considerable in their sensitivity to distance and country factors.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0406/2005-14.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2005-14.

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Length: 39 pages
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:kud:kuieca:2005_14

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Keywords: export; gravity model;

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  1. International Monetary Fund, 1992. "Regional Trade Arrangements," IMF Occasional Papers 93, International Monetary Fund.
  2. Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor & Zoega, Gylfi, 1997. "A Mixed Blessing: Natural Resources and Economic Growth," CEPR Discussion Papers 1668, C.E.P.R. Discussion Papers.
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Cited by:
  1. Wu, Po-Chin & Liu, Shiao-Yen & Pan, Sheng-Chieh, 2013. "Nonlinear bilateral trade balance-fundamentals nexus: A panel smooth transition regression approach," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 318-329.

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