Determinants of Austrian International Trade: Analysis Based on the Gravity Model

Lucie Davidova and Vladimir Benacek
Additional contact information
Lucie Davidova: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/
Vladimir Benacek: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/

No 2014/15, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: The purpose of this paper is to examine Austrian foreign trade and estimate the country’s export function. The analysis is based on the gravity model of trade in the log-log form, augmented by additional variables in order to control for the impact of institutions on decision-making. Our panel dataset consists of 3,396 observations of Austrian exports to 211 countries over the period from 1995 to 2011. At that time, the Austrian export was very closely dependant on the German market, which the model proved to be a natural outcome. In other respects it has been, however, diversified among many smaller trade partners whose importance has been gradually shifting eastwards. We employ Fixed Effects and Random Effects as estimation techniques. By taking advantage of the panel data structure, we estimate the gravity equation as two alternative one-way estimators – as 17 segments of cross-sections and as 211 time series. This allows us to estimate factors related to two complementary questions of “where to export” and “how much to export over time”. For each question we test and quantify the relevance of nine economic and ten institutional factors.

Keywords: Austria; export; gravity model; fixed effects; random effects (search for similar items in EconPapers)
JEL-codes: C13 C23 F10 F12 F14 (search for similar items in EconPapers)
Pages: 35pages
Date: 2014-02, Revised 2014-02
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ies.fsv.cuni.cz/sci/publication/show/id/5058/lang/cs (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ies.fsv.cuni.cz/sci/publication/show/id/5058/lang/cs [301 Moved Permanently]--> https://ies.fsv.cuni.cz/sci/publication/show/id/5058/lang/cs)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2014_05

Access Statistics for this paper

More papers in Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Natalie Svarcova ().