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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


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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Toto dielo je publikované pod/This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.