A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports
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
Volume (Year): (2011)
Issue (Month): 21 ()
|Contact details of provider:|| Postal: |
Phone: +34 93 310 11 12
Fax: +34 93 310 11 12
Web page: http://www.aecr.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew K. Rose, 2002.
"Do We Really Know that the WTO Increases Trade?,"
NBER Working Papers
9273, National Bureau of Economic Research, Inc.
- Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
- A. Porojan, 2001. "Trade Flows and Spatial Effects: The Gravity Model Revisited," Open Economies Review, Springer, vol. 12(3), pages 265-280, July.
- James E. Anderson & Eric van Wincoop, 2004.
NBER Working Papers
10480, National Bureau of Economic Research, Inc.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
- Griffith, Daniel A., 2007. "Spatial Structure and Spatial Interaction: 25 Years Later," The Review of Regional Studies, Southern Regional Science Association, vol. 37(1), pages 28-38.
- D A Griffith & K G Jones, 1980. "Explorations into the relationship between spatial structure and spatial interaction," Environment and Planning A, Pion Ltd, London, vol. 12(2), pages 187-201, February.
- J. A. Hausman, 1976.
"Specification Tests in Econometrics,"
185, Massachusetts Institute of Technology (MIT), Department of Economics.
- Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, 05.
- Breusch, T.S. & Pagan, A.R., .
"The Lagrange multiplier test and its applications to model specification in econometrics,"
CORE Discussion Papers RP
-412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ris:invreg:0039. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julieta Llungo Ortíz)
If references are entirely missing, you can add them using this form.