Determinants of Barbados Exports: Preliminary Analysis using a Gravity Model Approach

Hippolyte, Rommell (2012): Determinants of Barbados Exports: Preliminary Analysis using a Gravity Model Approach.

Abstract

This study explores the factors that affect the merchandise exports of Barbados. Using a gravity model on 2005 data on 105 importing countries it was found that the flow of exports of the country are positively influenced by the GDP and GDP per capita of importing countries, participation in CARICOM which is a regional trade agreement, and countries that share the same language as Barbados. In contrast, the distance between Barbados and importing countries has a strong negative impact on the exports of the island. Other preferential market access arrangements Barbados enjoys, such as bilateral trade agreements and the Generalised System of Preferences, have insignificant effects on export flows. The model was also used to highlight potential export markets for the country. It is expected this application of the gravity model may particularly interest policymakers in Barbados.

• Item Type: MPRA Paper
• Language: English
• Keywords: gravity model, Barbados, export potential, cross-sectional data
• Subjects: F - International Economics > F1 - Trade > F10 - General; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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