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Macedonia’s exports and the gravity model

Author

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  • Josheski, Dushko
  • Apostolov, Mico

Abstract

This paper examines the export performance of the Republic of Macedonia to its main trading partners; hence we focus on the major importing countries which are most present in the Macedonian trade balance. The data used in this article are analyzed with gravity model, which has good characteristics and very stable performance. Further, the data sample is formed on the Balkan countries i.e. Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Romania, Slovenia, Turkey and Serbia and Montenegro. The results show that the domestic country GDP is positively correlated with the exports from the source country to target countries and that Balkan countries have positive propensities to import from Macedonia, however it was found that populations of source country and target country are negatively correlated with exports from the source country to target countries. Additionally, the business cycles had no positive effect on Macedonian export to the target countries.

Suggested Citation

  • Josheski, Dushko & Apostolov, Mico, 2013. "Macedonia’s exports and the gravity model," MPRA Paper 48180, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:48180
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    File URL: https://mpra.ub.uni-muenchen.de/48180/1/MPRA_paper_48180.pdf
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    References listed on IDEAS

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    5. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    6. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters,in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
    7. Inmaculada Martinez-Zarzoso, 2003. "Gravity model: An application to trade between regional blocs," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 31(2), pages 174-187, June.
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    12. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
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    More about this item

    Keywords

    exports; gravity model; Macedonia;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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