Macedonia’s exports toward Southeast Europe through the gravity model

Author(s):

Mico Apostolov, (UGD, Stip, Macedonia) (Università degli Studi di Torino, Torino, Italia)

Dushko Josheski, (UGD, Stip, Macedonia)

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Abstract:

Purpose

The purpose of this paper is to examine the export performance of the Republic of Macedonia to its main trading partners from Southeast Europe; hence, the authors focus on the major importing countries which are most present in the Macedonian trade balance.

Design/methodology/approach

The data used in this paper are analyzed with gravity model, which has good characteristics and very stable performance. Further, the data sample is formed on major importers form the Southeastern Europe region.

Findings

The results show that the domestic country GDP is positively correlated with the exports from the source country to target countries and that Balkan countries have positive propensities to import from Macedonia, however, it was found that populations of source country and target country are negatively correlated with exports from the source country to target countries. Additionally, the business cycles had no positive effect on Macedonian export to the target countries.

Originality/value

Based on pertinent theoretical concepts and existing empirical findings, and by applying up-to-date methodological approach, case studies might bring vital contribution to the literature, which eventually leads to solid policy and practice.

Keywords:

Macedonia, Gravity model, Exports, Southeast Europe, E30, F10, O10, P20

Type:

Research paper

Publisher:

Emerald Publishing Limited

Received:

05 May 2017

Revised:

16 August 2017, 24 November 2017

Accepted:

16 January 2018

Acknowledgments:

This research is funded by UGD Research Fund – Contract No. 0307-98/77 of 01.11.2017.

Copyright:

© Emerald Publishing Limited 2018
Published by Emerald Publishing Limited
Licensed re-use rights only

Citation:

Mico Apostolov, Dushko Josheski, (2018) "Macedonia’s exports toward Southeast Europe through the gravity model", Journal of Economic and Administrative Sciences, Vol. 34 Issue: 2, pp.108-122, https://doi.org/10.1108/JEAS-05-2017-0039

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