Journal Articles
Discussion Papers
Discussion Papers
Abstract
Picture a small open economy in the North Atlantic Ocean, highly dependent on trade with the EU and NAFTA. How important are these trading blocs to the country’s exports? How important is the country’s location and size, and how do these affect the export sectors? A unique version of the gravity model is applied here using an inverse hyperbolic sine function. Typically, the export volume is significantly impacted by the economic size of the exporting country, but in this case it is not. This suggests that the exports from small remote economies are driven by different factors than exports from large economies.
Dataset (zip file, 2MB)
Citation
Assessment
Comments and Questions
Exports under the Flicker of the Northern Lights - Petur Sigurdsson - May 08, 2008 - 11:29
Comment on the paper
"Exports under the Flicker of the Northern Lights."
The paper addresses an interesting topic: why export patterns in small countries may differ from those in large countries. I find that the paper presents a convincing approach to the research question.
The
...[more]
...
theory provided is highly relevant to the subject matter, since the
gravity model deals with both population (market) size and GDP
(economic) size. The model also takes distance into account, which is
important for Iceland because of its remote location.
The econometric approach also provides convincing results for this research.
Comment - Ansgar Belke and Julia Spies - April 25, 2008 - 09:27
see attached file