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A Gravity Model for Exports from Iceland

Helga Kristjánsdóttir ()

No 2005-14, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics

Abstract: This paper applies a gravity model to examine the determinants of Icelandic exports. The model specifications tested allow for sector and trade bloc estimation. Also, a combination of an export ratio and a gravity model is tested, as well as marine product subsamples. The estimates are based on panel data on exports from 4 sectors, to 16 countries, over a period of 11 years. Estimates indicate that the size and wealth of Iceland does not seem to matter much for the volume of exports, not even when correted for the country’s small size. Finally, results indicate that trade bloc and sector effects matter and that marine products vary considerable in their sensitivity to distance and country factors.

Keywords: export; gravity model (search for similar items in EconPapers)
JEL-codes: F1 F15 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005-09
New Economics Papers: this item is included in nep-int
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