Determinants influencing Vietnam coffee exports

Abstract

AbstractThis study investigates the impact levels of determinants on Vietnam’s coffee exports by applying the Spatial Gravity Model and panel data to consider the spatial dependence in the gravity model. The Spatial Gravity Model was employed to spatially examine influencing factors among trading partners by means of spatial econometric approaches, based on Vietnamese coffee export data for 20 countries from 2005 to 2019. The results reveal that the export of coffee products is influenced by many determinants such as the gross domestic product (GDP) of the importing country, population, exchange fluctuations, free trade agreement (FTA), non-tariff barriers to trade, and tax rate. Among these determinants, GDP growth and population growth have a positive impact on coffee exports. On the other hand, tariffs, non-tariff barriers and exchange rate variables are factors that negatively affect coffee exports. In addition, the distance between countries has a negative impact on exports overall.

Keywords

• Spatial gravity model
• coffee
• export
• Vietnam
• Huifen (Helen) Cai, Middlesex University Business School, United Kingdom
• Econometrics