Determinants of service exports of Lithuania: a gravity model approach

Link to:
Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Knygos / Books
Language:
Anglų kalba / English
Title:
Determinants of service exports of Lithuania: a gravity model approach
Authors:
Publication Data:
Riga, 2015.
Pages:
60 p
Series:
SSE Riga student research papers; 166
Contents:
1. Introduction — 2. Literature review — 2.1. Brief introduction — 2.2. Literature review on the determinants of service exports — 2.2.1 The role of GDP — 2.2.2 The role of distance — 2.2.3 The role of time-zone differences — 2.2.4 The role of contiguity — 2.2.5 The role of a common language — 2.2.6 The role of trade agreements — 2.2.7 The role of institutions — 2.2.8 The role of human capital — 2.2.9 The role of remoteness — 3. Methodology — 3.1. The gravity equation: theoretical equation — 3.2. The gravity model specification for exports- — 3.3. Description of dependent and explanatory variables — 3.3.1. Dependent variable — 3.3.2. Explanatory variables — 3.3.3. Service subcategories — 3.4. Data — 4. Discussion of the results — 4.1. Total service exports — 4.2. Communication services — 4.3. Construction services — 4.4. Transport services — 4.5. Travel services — 4.6. Other business services — 4.7. Financial services — 4.8. Computer and information services — 5. Robustness check — 5.1. Park and Gauss-Newton regression tests — 5.2. RESET test — 6. Conclusion — References.
Subject Category:
LT
Prekės ir paslaugos / Goods and services; Eksportas. Importas / Export. Import.
Summary / Abstract:

ENThis paper investigates the determinants of aggregate service exports and the determinants of 7 service subcategories (i.e. transport, travel, communication, computer & information, financial, construction and other business services) of Lithuania using a gravity model and a panel dataset for the 2003-2012 period. First, a general gravity model for total exports is specified. Then, the general gravity model is augmented for each service subcategory by including additional variables that are specific for each service subcategory and that capture the features of each type of service. The results show that GDP of the destination country and a common spoken language exert a positive effect on trade in services. Time zone differences, EU membership and relative human capital are found to have a heterogeneous effect across service subcategories. Also, the significance of physical distance between Lithuania and its partners varies in dependence of the type of service. Remoteness of the destination country is found to be insignificant for the majority of service subcategories, except transport services, other business services, and computer & information services. Keywords: determinants of exports, exports of services, gravity model.

ISBN:
9789984842868
Subject:
Ekonomika / Economics
Permalink:
https://www.lituanistika.lt/content/114506
Updated:
2026-02-25 13:43:12
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