Logo
Munich Personal RePEc Archive

Portuguese Trade and European Union: The Gravity Model

Leitão, Nuno Carlos and Tripathi, Sabyasachi (2013): Portuguese Trade and European Union: The Gravity Model.

This is the latest version of this item.

[thumbnail of MPRA_paper_45994.pdf]
Preview
PDF
MPRA_paper_45994.pdf

Download (329kB) | Preview

Abstract

This research examines the determinants of bilateral trade between Portugal and European Union countries (EU-27) for the period 2000-2010, using a panel data. In this study we revisited the recent contribution as in Charoensukmongkol and Sexton (2011), Samy and Dehejia (2011), Serrano and Pinilla (2012), and Faustino and Proença (2011). The findings show that Portuguese trade flows are according the Linder hypothesis. The international trade is explained by Heckscher-Ohlin theorem. The empirical results demonstrate that geographical distance has a negative and significant effect on bilateral trade, i.e., there is a bilateral trade increase when trade partners are close. The economic dimension and common border are positively correlated with bilateral trade. Our results also support the hypothesis that physical capital endowment has a positive effect on bilateral trade.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.