Marek Maciejewski

Department of International Trade, Cracow University of Economics

Poland

maciejem@uek.krakow.pl

What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Krzysztof Wach

Department of International Trade, Cracow University of Economics

Poland

wachk@uek.krakow.pl

Abstract. The aim of this article is to demonstrate the differences in the intensity of production factors’ use in the export of the European Union countries, which cannot be explained only by the resources available at the disposal of these countries. The paper is an empirical analysis of the general and bilateral trade of the EU countries. The article uses statistical data for comparative analysis of the export structure and further construction of the gravity model. The line of reasoning consists of two essential elements. First, conclusions are drawn based on literature analysis. The main empirical part of the article is based on quantitative analysis (the gravity model using secondary data). UNCTAD was used as the data source of statistical data. Commercial cooperation attractiveness in the EU is a key factor in constructing the gravity model of foreign trade. The attractiveness can be expressed as the size and level of development of economic partners, geographical distance and the common border. Nevertheless, new variables such as memberships in the EU and the EMU were added. The resources of production factors have no direct impact on the export structure. The chosen direction of economic cooperation is crucial.

Received: October, 2018

1st Revision: February, 2019

Accepted: February, 2019

DOI: 10.14254/2071-8330.2019/12-1/10

JEL Classification: F14

Keywords: export, international trade, commodity structure, production factors, gravity model