Vulnerability of foreign trade of the Republic of Moldova analyzed on the basis of the gravity model
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339.5.01(478) (2)
Foreign trade. External trade. International trade (386)
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DIAVOR, Mircea. Vulnerability of foreign trade of the Republic of Moldova analyzed on the basis of the gravity model . In: Relaţii internaţionale. Plus, 2021, nr. 2(20), pp. 199-205. ISSN 1857-4440. DOI: https://doi.org/10.52327/1857-4440.2021.2(20).22
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Relaţii internaţionale. Plus
Numărul 2(20) / 2021 / ISSN 1857-4440 /ISSNe 2587-3393

Vulnerability of foreign trade of the Republic of Moldova analyzed on the basis of the gravity model

DOI:https://doi.org/10.52327/1857-4440.2021.2(20).22
CZU: 339.5.01(478)

Pag. 199-205

Diavor Mircea
 
Academy of Economic Studies of Moldova
 
 
Disponibil în IBN: 27 decembrie 2021


Rezumat

The article examines the vulnerability of foreign trade of the Republic of Moldova, based on the development and analysis of a gravity model, in order to determine and quantify the factors affecting foreign trade. The distance and economic size of the trading partners underlie the gravity model, and the model created by the author confirms these assumptions. Another factor analyzed on the basis of the elaborated model, using the GDP difference per capita between the Republic of Moldova and trading partners as an independent variable, confirms the relevance of Ricardo’s model. The analysis shows that free trade agreements have a positive effect on foreign trade, and the ,,Brussels effect” has a positive and significant impact on Republic of Moldova’s foreign trade. In the research we analyzed the gravity model for the Republic of Moldova with 20 trading partners by the econometric method of the regression panel data.

Cuvinte-cheie
foreign trade, gravity model, panel data regression, Brussels effect, free trade agreements