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Analysis of the Slovak Wine Exports by Gravity Model

The focus of the paper is to determine the tendency of development of Slovak wine international trade. The objective of the article is to identify barriers and positive stimulants of wine exports using the gravity model. On the one hand, the basic determinants of gravity model as GDP per capita, number of inhabitants in the import countries and the distance between Slovakia and its business partners are considered as the potential determinants for the Slovak wine export. On the other hand, there are other factors used that come from papers with similar topics and those are production of the domestic country, membership in international and trade organizations, common characteristics of the domestic country and its business partners. Based on the results of this research, variability of dependent variable can be better explained by model with cross-cutting nature than by the panel model. Significant variables behave according to the general presumptions. Membership in the EU, the OECD and the WTO were determined by the model as the factors without significant influence on Slovak wine export. Common characteristics, however, appeared to have positive impact on mutual foreign trade. Furthermore, it was found out that the Slovak wine is seen as an inferior good by the consumers.

Analysis of the Slovak Wine Exports by Gravity Model
Analýza slovenského exportu vína využitím gravitačného modelu


Keywords (author): foreign trade, determinants of export, wine, gravity model

Descriptors (AGROVOC): foreign trade, exports, wine, decision support

Contact: Eva JUDINOVÁ, Slovak University of Agriculture in Nitra, Faculty of Economics and Management, Department of Economics, 94976 Nitra, E-mail:

Date of online publishing: 2011-12-12

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Source: http://www.fem.uniag.sk/acta/en/13/acta_oeconomica_et_informatica/content/2011/2/1023/

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