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Abstract

In this paper, a gravity model approach was employed to analyze the major factors that influence Algerian food exports to the entire trading partners (98 countries) for the period 2001-2017. In accordance with the panel data analysis with WLS regression method, more consistent results were obtained. The results indicate that there is an increased propensity for food exports. Besides, the main factors to Algerian food exports are partner countries' growth, domestic demand and the common culture and border. All these factors affect the country's exports positively. Transportation costs, proxied by distance, have negative andsignificant effect on Algerian food exports. Results allow us to reveal the countryspecific effects through a ranking and shows that neighboring countries are in the top 10 list. Nevertheless, the existence of trade agreement has a significant negative effect which reflects the fact that trade gains from the trade agreements have been minimal for Algerian food exports.

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