EU country and EFTA country export differences

• Published in: Journal of Risk and Financial Management
• Main Authors: Óskarsson, Guðmundur Kristján, Kristjánsdóttir, Helga
• Other Authors: School of Business and Science, University of Akureyri
• Format: Article in Journal/Newspaper
• Language: English
• Published: 2021
• Subjects: Milliríkjaviðskipti; Útflutningur; UK; EU; International trade; Geographic distance; EFTA; SDG 7 - Affordable and Clean Energy; SDG 10 - Reduced Inequalities; SDG 5 - Gender Equality; SDG 13 - Climate Action; SDG 6 - Clean Water and Sanitation; SDG 8 - Decent Work and Economic Growth; SDG 1 - No Poverty; SDG 9 - Industry; Innovation; and Infrastructure; Iceland
• Online Access: https://hdl.handle.net/20.500.11815/2770; https://doi.org/10.3390/jrfm14040147

This research seeks to analyze the export differences facing countries in the EU and EFTA. This is firstly to analyze the effects on international trade of the trade bloc of the European Union (EU), and secondly the European Free Trade Association (EFTA), and provide a comparison of these two. This research seeks to analyze exports determinants to answer these two questions. There are two countries selected for this study, the small EFTA country Iceland, and the large EU country UK, before BREXIT. We apply a gravity model in our econometric analysis, with exports dependent on the gross domestic product, population, and geographic distance. We estimate these effects on the exports of both the UK and Iceland in separate equation systems. We conclude that exports from the UK, before BREXIT, are more negatively affected by geographical distance than exports for the EFTA country Iceland, when corrected for gross domestic product and population size. This research seeks to analyze the export differences facing countries in the EU and EFTA. This is firstly to analyze the effects on international trade of the trade bloc of the European Union (EU), and secondly the European Free Trade Association (EFTA), and provide a comparison of these two. This research seeks to analyze exports determinants to answer these two questions. There are two countries selected for this study, the small EFTA country Iceland, and the large EU country UK, before BREXIT. We apply a gravity model in our econometric analysis, with exports dependent on the gross domestic product, population, and geographic distance. We estimate these effects on the exports of both the UK and Iceland in separate equation systems. We conclude that exports from the UK, before BREXIT, are more negatively affected by geographical distance than exports for the EFTA country Iceland, when corrected for gross domestic product and population size. Peer reviewed