Gravity-type model of Czech agricultural export

Abstract

The article concentrates on the application of gravity-type model to explain the volume of agro-exports from the Czech Republic. The multiplicative exponential function of the appropriate explanatory variables is used to describe the bilateral trade flows. Gross national product, gross national product per capita and geographical distance between the capitals of economies proved statistically significant. From regression analysis of the transformed data, there is apparent the positive correlation between the export volume of the commodity group 0 - Food and live animals SITC, rev.3 and gross national income. On the contrary, the negative correlation is between the agro-export volume and gross national income per capita and geographical distance as well. The built model is significant at the 5% level and explains more than 75% of dependent variable variance.

Keywords

• international trade
• agricultural trade
• log-linear regression
• trade flows