Author(s): Kushtrim Braha, Artan Qineti, Ema Lazorčáková, Dimuth Nambuge, Abdullah Alawad
Title: Determinants of export in transition economies: Evidence from the South East Europe (SEE-6) and Commonwealth of Independent States (CIS)
Source: International Scientific Days 2018 :: Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems :: Proceedings
ISBN: 978-80-7598-180-6
DOI: https://doi.org/10.15414/isd2018.s13.04
Publisher: Wolters Kluwer ČR, Prague
PY, pages: 2018, 2406-2439
Published on-line: 2018-11-09
Language: eng
Abstract: The main focus of this study is to analyse key determinants of export in transition
economies of South East Europe (SEE-6) and Commonwealth of Independent States
(CIS). Here we employ augmented gravity model to estimate impact of the key variables
in export flows for the period 2005-2015. The Poisson Pseudo-Maximum Likelihood
(PPML) estimator is used for stepwise estimations of the augmented gravity
model, including effects of income differential, Diaspora, exchange rate and price
stability, trade liberalization, institutional distance and infrastructure. In the last
stage of this study we estimate the export potential for both regions. Findings suggest
that export flow increases with increasing economic size, revealing higher impact of
importer’s absorbing potential comparatively to exporter’s productive potential. On
the other hand, growth in domestic demand, resulting from increase in population,
leads to reduction of export. Moreover, exports are determined by low transportation
costs (distance), adjacency proximity (sharing common border) and linguistic
similarities. Diaspora residing in the importing countries facilitates export flows.
Results of this study reveal that exchange rate variability has a positive impact, while
bilateral institutional distance has diminishing effects on exports.
Keywords: exports, gravity model, panel data, transition economies
JEL Classification: F1, F12, C23, P2, P5
Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
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