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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 pane...

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Bibliographic Details
Main Authors: Helga Kristjánsdóttir, Ronald Davies, Guðbjörn Freyr Jónsson
Other Authors: The Pennsylvania State University CiteSeerX Archives
Format: Text
Language:English
Published: 2005
Subjects:
Export
Gravity Model. JEL Classifications Codes
F1
F15 ∗I wish to thank for helpful comments by Martin Browning
Mette Ejrnæs
Þorvaldur Gylfason
Browning
Iceland
Online Access:http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.329.3871
http://www.econ.ku.dk/cam/wp0910/wp0406/2005-14.pdf/
Description
Summary: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.

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