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Gravity Model Approach For Exports Analysis Of Republic Of Moldova Between 2010 And 2021

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  • Xenia MIGOVA

Abstract

This paper explores the effects of determinants of bilateral trade on export flows of Republic of Moldova during last decade in the framework of gravity model. Being a structural model with solid theoretical foundations it proves that markets are linked and changes in one partner country can cause changes in trade performance of another partner country. The variables include trade partner’s GDP, economic distance, and Association Agreement membership. Specifically, the model relies on a fixed effect panel estimation for explaining the export flows of the Republic of Moldova. In order to check the viability of the gravity equation, there are executed statistical tests. Based on the analysis, there are provided policy recommendations for trade policy.

Suggested Citation

  • Xenia MIGOVA, 2022. "Gravity Model Approach For Exports Analysis Of Republic Of Moldova Between 2010 And 2021," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 8(2), pages 158-167, December.
    • Handle: RePEc:aem:journl:v:8:y:2022:i:2:p:158-167
    DOI: https://doi.org/10.53486/2537-6179.8-2.11
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    More about this item

    Keywords

    gravity model; panel data; Republic of Moldova; export; Association Agreement;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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