A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports

Ana Angulo, N. Mtimet, Boubaker Dhehibi (), M. Atwi, O. Ben Youssef, J. M. Gil and M. B. Sai
Additional contact information
N. Mtimet: Ecole Superieure Agriculture de Mograne
M. Atwi: Universidad de Zaragoza
O. Ben Youssef: Centro de Exportaciones de Túnez - CEPEX.
J. M. Gil: CREDA-UPC-IRTA
M. B. Sai: Instituto del Olivar de Túnez

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2011, issue 21, 225-239

Abstract: This study revisits the utility of gravity models in the analysis of the principal determinants of exports. Traditional cross-sectional models are improved by considering the effect of omitted variables and/or the dynamic of trade flows through the use of spatial econometric techniques and panel data specification. This proposal is applied to the Tunisian olive oil exports during the period 2001-2009. The results provide evidence of the inertia found in export volumes, with trade relations anchored in the past likely to continue in the future. Also, we obtain evidence on the existence of a clear similarity in flows between neighbouring importing countries. On the other hand, the results show a positive, significant relationship between the importing country’s income level and imported olive oil volume. The effect of importers’ human development index is positive. The distance between countries has a negative impact on trade flow. On the contrary, sharing a common language increases olive oil trade flows. Finally, trade figures and results reflect a strong dependence of Tunisian olive oil production on precipitations

Keywords: Gravity model; spatial econometrics; panel data; tunisian olive oil exports (search for similar items in EconPapers)
JEL-codes: C23 F10 R15 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.aecr.org/images/ImatgesArticles/2012/3/13_ANGULO.pdf Full text (application/pdf)

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:ris:invreg:0039

Access Statistics for this article

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH is currently edited by Vicente Royuela Mora

More articles in INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH from Asociación Española de Ciencia Regional C/ Viladomat, 321 entresuelo - 08029 Barcelona, Teléfono y Fax: + 34 933101112, E-mail: info@aecr.org, Web: www.aecr.org, Web Investigaciones Regionales: www.investigacionesregionales.org. Contact information at EDIRC.
Bibliographic data for series maintained by IIRR-JORR ().