Determinants of the European Trade

Institutions, Culture, Infrastructure and Geography

Bibliographic Data

ID7973452
AuthorsJan Hanousek (0009-0006-3997-5931, Charles University, corresponding author), Evžen Kočenda (0000-0003-4110-1169)
Year2015
Volume63
Issue5
Pages624-640
Publication date2015-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.1016
OpenAlexW2257378754
LanguageEN
Citations received2
References cited28

We analyze the effect of the large set of theoretically motivated determinants on international trade among European countries during the period 1992-2008. The determinats cover areas of culture, institutions, infrastructure, and geography, including trade directions. We analyze trade in three types of goods: raw materials, parts and components, and capital goods. For each type of goods we differentiate trade in flows, extensive margin, and intensive margin. Methodologically we first derive fixed effects related to unique pairs of countries in terms of exports andimports. Then we explain the fixed effects with the set of trade determinants. We show number of detailed results that could be summarized in a following way. Geographical, cultural, and institutional determinants exhibit intuitively correct but varying effects. Soft and hard infrastructures exhibit strong and positive effect. Trade directions between new and old EU members plays a key role in the European trade

Economic geography · Economic integration · Economics · Free trade · Geographical distance · Gravity model of trade · International economics · International trade · Margin (machine learning) · Regional trade · Trade barrier · Global Trade and Competitiveness · Global trade and economics · International Business and FDI

Tools

Open DOIOpen Access