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A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports

Author

Listed:
  • Angulo, A. M.

    (Universidad de Zaragoza)

  • Mtimet, N.

    (Ecole Superieure Agriculture de Mograne)

  • Dhehibi, B.

    (International Center for Agricultural Research in the Dry Areas (ICARDA))

  • Atwi, M.

    (Universidad de Zaragoza)

  • Ben Youssef , O.

    (Centro de Exportaciones de Túnez - CEPEX.)

  • Gil, J. M.

    (CREDA-UPC-IRTA)

  • Sai, M. B.

    (Instituto del Olivar de Túnez)

Abstract

This study revisits the utility of gravity models in the analysis of the principal determinants of exports. Traditional cross-sectional models are improved by considering the effect of omitted variables and/or the dynamic of trade flows through the use of spatial econometric techniques and panel data specification. This proposal is applied to the Tunisian olive oil exports during the period 2001-2009. The results provide evidence of the inertia found in export volumes, with trade relations anchored in the past likely to continue in the future. Also, we obtain evidence on the existence of a clear similarity in flows between neighbouring importing countries. On the other hand, the results show a positive, significant relationship between the importing country’s income level and imported olive oil volume. The effect of importers’ human development index is positive. The distance between countries has a negative impact on trade flow. On the contrary, sharing a common language increases olive oil trade flows. Finally, trade figures and results reflect a strong dependence of Tunisian olive oil production on precipitations

Suggested Citation

  • Angulo, A. M. & Mtimet, N. & Dhehibi, B. & Atwi, M. & Ben Youssef , O. & Gil, J. M. & Sai, M. B., 2011. "A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 225-239.
  • Handle: RePEc:ris:invreg:0039
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    References listed on IDEAS

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    1. A. Porojan, 2001. "Trade Flows and Spatial Effects: The Gravity Model Revisited," Open Economies Review, Springer, vol. 12(3), pages 265-280, July.
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    Citations

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    Cited by:

    1. Ayadi, Mohamed & Mattoussi, Wided, 2014. "From productivity to exporting or vice versa? Evidence from the Tunisian manufacturing sector," WIDER Working Paper Series 098, World Institute for Development Economic Research (UNU-WIDER).
    2. Tamara Mata & Carlos Llano, 2013. "Social networks and trade of services: modelling interregional flows with spatial and network autocorrelation effects," Journal of Geographical Systems, Springer, vol. 15(3), pages 319-367, July.
    3. Mohamed Ayadi & Wided Mattoussi, 2014. "From Productivity to Exporting or Vice Versa? Evidence from Tunisian Manufacturing Sector," Working Papers 852, Economic Research Forum, revised Nov 2014.
    4. Mohamed Ayadi & Wided Matoussi, 2014. "Working Paper - 214 - From Productivity to Exporting or Vice Versa Evidence from Tunisian Manufacturing Sector," Working Paper Series 2150, African Development Bank.

    More about this item

    Keywords

    Gravity model; spatial econometrics; panel data; tunisian olive oil exports;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F10 - International Economics - - Trade - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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