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Destinations of Irish Exports:A Gravity Model Approach

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  • Lawless, Martina

    (Central Bank and Financial Services Authority of Ireland)

Abstract

This paper uses a gravity model approach in order to analyse the geographical patterns of Irish exports. The gravity model in international trade has been demonstrated to be an extremely robust empirical method. The gravity model is first applied to aggregate Irish exports from 1980 to 2007. Distance is found to have a strong negative effect on exports. On the other hand, exports are positively related to sharing a common language and when communications infrastructure is well developed. The gravity model is shown to fit the data extremely well. We then use firm-level data on indigenous Irish exporters to divide the effects of trade costs into how they influence the number of firms exporting to each market and the average exports per firm. Finally the firm data is divided into four broad sectors to examine if there is any sectoral variation in the standard results.

Suggested Citation

  • Lawless, Martina, 2009. "Destinations of Irish Exports:A Gravity Model Approach," Research Technical Papers 14/RT/09, Central Bank of Ireland.
    • Handle: RePEc:cbi:wpaper:14/rt/09
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    File URL: https://centralbank.ie/docs/default-source/publications/research-technical-papers/14rt09---destinations-of-irish-exports-a-gravity-model-approach-(lawless).pdf?sfvrsn=4
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    Cited by:

    1. Wei-Chih Chen, 2013. "The Extensive and Intensive Margins of Exports: The Role of Innovation," The World Economy, Wiley Blackwell, vol. 36(5), pages 607-635, May.
    2. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 2013-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Vårdal, Erling & Asche, Frank & Straume, Hans-Martin, 2017. "Perish or prosper: Trade patterns for highly perishable products," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261278, European Association of Agricultural Economists.
    4. Straume, Hans-Martin, 2015. "Trade costs and Norwegian salmon export," Working Papers in Economics 06/15, University of Bergen, Department of Economics.

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