EXPORT OF AGRICULTURAL PRODUCTS FROM SERBIA TO THE EU - PANEL GRAVITY MODEL

Vladimir M. Ristanović; Aleksandra  Tošović Stevanović

doi:10.5937/ekoPolj2201257R

Authors

Vladimir M. Ristanović Institute of European Studies, Beograd
Aleksandra Tošović Stevanović Faculty of Business Economics and Entrepreneurship, Belgrade

DOI:

https://doi.org/10.5937/ekoPolj2201257R

Keywords:

agro products, export, panel gravity model, Serbia, EU

Abstract

This paper will analyse the export of agricultural products of Serbia to the EU during the period from 2001 to 2017. A panel gravity model was used to assess the effects of trade ﬂows. The main advantage of the gravity model is the application of basic indicators of the economy and the ability to evaluate panel series. The obtained results show that the size of the economy, measured by gross domestic product, the size of the market of foreign trade partners, measured by population, and the distance between trading partner countries, have measurable effects on the export of agricultural products from Serbia to the EU. Using a simple econometric model, we analysed the effects of Serbia’s international trade and noticed that there is significant room for improving the exchange between Serbia and EU members. A multi-variable model would provide more information to trade policy makers.

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