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Abstract

The basic gravity model of the bilateral trade supposes that the rich and geographically closely situated countries trade more. We have used the enlarged gravity models to explore the effect of other factors on the EU's bilateral trade. The aim of the article is to analyse the bilateral trade of the EU member states with third countries, and identify the factors which affect the trade with different products during the term 2004- 2008. The impact of the common border, language, colonial history, and variety of trade agreements on the trade with commodities 02 - dairy products, birds' eggs, honey and 04 - meat and edible meat offal is studied in the article.

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