Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65(4), 1339-1347 | DOI: 10.11118/actaun201765041339

Is Czech Export still Biased towards the Eastern Markets?

Lucie Coufalová, Libor Žídek
Faculty of Economics and Administration, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic

There were special relationships among the COMECON members during the period of the centrally planning system. Czechoslovak trade/export was naturally biased towards these countries. The goal of this paper is to find out if there still exists any export bias towards the Russian or the ex-COMECON markets. In our research approach we use gravity models. We revealed that taking into consideration growth in GDP, geographical distance and institutions there is no bias towards the Russian or the CIS markets. But we discovered a bias towards the ex-COMECON contemporary members of the EU.

Keywords: Czech exports, COMECON, Russia, gravity model
Grants and funding:

This text is an output of the grant project GA MU "Russia in the categories friend - enemy. Czech reflection" (code MUNI/M/0921/2015).

Published: September 1, 2017  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Coufalová, L., & Žídek, L. (2017). Is Czech Export still Biased towards the Eastern Markets? Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(4), 1339-1347. doi: 10.11118/actaun201765041339
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ANDERSON, J. E. 1979. A theoretical foundation for the gravity equation. The American Economic Review, 69(1): 106 - 116.
    2. ANDERSON, J. E. and WINCOOP, E. van. 2003. Gravity with Gravitas: A Solution to the Bording Puzzle. The American Economic Review, 93(1): 170 - 192. DOI: 10.1257/000282803321455214 Go to original source...
    3. ANDERSON, J. E. and VAN WINCOOP, E. 2004. Trade costs. Journal of Economic literature, 42(3): 691 - 751. DOI: 10.1257/0022051042177649 Go to original source...
    4. BAIER, S. L. and BERGSTRAND, J. H. 2002. On the endogeneity of international trade flows and free trade agreements. Unpublished manuscript. University of Notre Dame.
    5. BERGSTRAND, J. H. 1985. The gravity equation in international trade: some microeconomic foundations and empirical evidence. The review of economics and statistics, 67(3): 474 - 481. DOI: 10.2307/1925976 Go to original source...
    6. BRUN, J. F., CARRÈRE, C., GUILLAUMONT, P., and DE MELO, J. 2005. Has distance died? Evidence from a panel gravity model. The World Bank Economic Review, 19(1): 99 - 120. DOI: 10.1093/wber/lhi004 Go to original source...
    7. BUBÁKOVÁ, P. 2013. Gravity Model of International Trade, Its Variables, Assumptions, Problems and Applications [in Czech: Gravitační model mezinárodní směny, jeho proměnné, předpoklady, problémy a aplikace]. Acta Oeconomica Pragensia, 21(2): 3 - 24. DOI: 10.18267/j.aop.396 Go to original source...
    8. COLLINS, S. M. and RODRIK, D. 1991. Eastern Europe and the Soviet Union in the World Economy. Washington: Institute for International Economics.
    9. CZECH STATISTICAL OFFICE. © 2016. External Trade Database. [Online]. Available at: https://apl.czso.cz/pll/stazo/STAZO.STAZO [Accessed: 2016, November 18].
    10. DEARDORFF, A. V. 1984. Testing trade theories and predicting trade flows. Handbook of international economics, 1: 467 - 517. DOI: 10.1016/S1573-4404(84)01013-3 Go to original source...
    11. DE SOUSA, J. and LAMOTTE, O. 2007. Does political disintegration lead to trade disintegration? Evidence from transition countries1. Economics of Transition, 15(4): 825 - 843. DOI: 10.1111/j.1468-0351.2007.00310.x Go to original source...
    12. EGGER, P. 2004. Estimating Regional Trading Bloc Effects with Panel Data. Review of World Economics, 104(1): 151 - 166. DOI: 10.1007/BF02659714 Go to original source...
    13. EGGER, P. 2005. Alternative Technique for Estimation of Cross-Section Gravity Models. Review of International Economics, 13(5): 881 - 891. DOI: 10.1111/j.1467-9396.2005.00542.x Go to original source...
    14. EICHENGREEN, B. and IRWIN, D. A. 1996. The role of history in bilateral trade flows. NBER Working Paper Series. Working Paper No. 5565.Cambridge, MA: NBER. Go to original source...
    15. FIDRMUC, J. and FIDRMUC, J. 2003. Disintegration and Trade. Review of International Economics, 11(5): 811 - 829. DOI: 10.1046/j.1467-9396.2003.00419.x Go to original source...
    16. FRANCOIS, J. and MANCHIN, M. 2006. Institutional quality, infrastructure, and the propensity to export. Unpublished. Washington DC: World Bank. [Online]. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.557.5080&rep=rep1&type=pdf [Accessed: 2016, November 27].
    17. FRANKEL, J. 1997. Regional Trading Blocs in the World Trading System. Washington: Institute for International Economics.
    18. GEOBYTES. Distance Calculator - Find the Distance Between Cities. Geobytes [Online]. Available at: http://geobytes.com/citydistancetool/ [Accessed: 2016, November 18].
    19. GEODATASOURCE. 2001 - 2017. Distance calculator. [Online]. Available at: www.geodatasource.com/distance-calculator [Accessed: 2016, November 18].
    20. GÓMEZ-HERRERA, E. 2012.Comparing alternative methods to estimate gravity models of bilateral trade. Empirical Economics, 44(3): 1087 - 1111. DOI: 10.1007/s00181-012-0576-2 Go to original source...
    21. GRANČAY, M., GRANČAY, N., DRUTAROVSKÁ, J. and MURA, L. 2015. Gravity model of trade of the Czech and Slovak Republics 1995 - 2012: How have determinants of trade change [in Slovak: Gravitačný model zahraničného obchodu českej a slovenskej republiky 1995 - 2012: Ako sa zmenili determinanty obchodu]. Politická ekonomie, 6: 759 - 777. DOI: 10.18267/j.polek.1025 Go to original source...
    22. HELPMAN, E., and KRUGMAN, P. R. 1985. Market structure and foreign trade: Increasing returns, imperfect competition, and the international economy. MIT press.
    23. LINDERS, G. J. and DE GROOT, H. L. 2006. Estimation of the gravity equation in the presence of zero flows. Tinbergen Institute Discussion Paper No. 06 - 072/3. [Online]. Available at: https://ssrn.com/abstract=924160 [Accessed: 2017, March 31].
    24. LINNEMANN, H. 1966. An Econometric Study of International Trade Flows. Contributions to Economic Analysis No. 42. North-Holland Publishing.
    25. MAYER, T. and ZIGNAGO, S. 2011. The GeoDist Database. [XLS File]. Available at: www.cepii.fr/distance/geo_cepii.xls [Accessed: 2016, November 27].
    26. MCCALLUM, J. 1995. National borders matter: Canada-US regional trade patterns. The American Economic Review, 85(3): 615 - 623.
    27. MINISTRY OF INDUSTRY AND TRADE. © 2006. Export Strategy of the Czech Republic for 2006 - 2010 [in Czech: Exportní strategie ČR pro období 2006 - 2010]. [Online]. Available at: www.mpo.cz/dokument1697.html [Accessed: 2016, November 28].
    28. MINISTRY OF INDUSTRY AND TRADE. © 2012. Export Strategy of the Czech Republic for 2012 - 2020 [in Czech:Exportní strategie ČR pro období 2012 - 2020]. [Online]. Available at: www.mpo.cz/dokument103015.html [Accessed: 2016, November 28].
    29. NEZVAL, P. 1997. World economy [in Czech: Světová ekonomika]. Karviná: Slezská universita Opava.
    30. NITSCH, V. 2000. National borders and international trade: evidence from the European Union. Canadian Journal of Economics, 33(4): 1091 - 1105. DOI: 10.1111/0008-4085.00055 Go to original source...
    31. PALUZIE, E. 2015. The internationalization of the Catalan economy: brake or boost the independence [in Catalan: La internacionalització de l'economia catalana: fre o estímul a la independència]. Eines per al'esquerranacional, (24): 90 - 113.
    32. PŮLPÁN, K. 1993. Outline of Czech and Czechoslovak economic history until 1990 [in Czech: Nástin českých a československých hospodářských dějin do roku 1990]. Prague: Institut ekonomických věd.
    33. SAMSONYAN, H. 2009. Russian Federation as Strategic Market for Czech Exporters and Investors [in Czech: Rusko jako strategický trh pro české exportéry a investory]. Současná Evropa, 14(2): 85 - 111.
    34. THE WORLD BANK GROUP. © 2016. GDP PPP (current international). [Online]. Available at: http://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD [Accessed: 2016, November 14].
    35. THE WORLD BANK GROUP. © 2016. Worldwide Governance Indicators (WGI). [Online]. Available at: http://data.worldbank.org/data-catalog/worldwide-governance-indicators [Accessed: 2016, November 14].
    36. TINBERGEN, J. et al. 1962. Shaping the world economy; suggestions for an international economic policy. Books (Jan Tinbergen). New York: Twentieth Century Fund.
    37. ZASTUPITELSKÝ ÚŘAD ČR V MOSKVĚ. 2016a. Russia: Foreign trade and investment [in Czech: Rusko: Zahraniční obchod a investice]. BusinessInfo.cz [Online]. Available at: www.businessinfo.cz/cs/clanky/rusko-zahranicni-obchod-a-investice-19084.html [Accessed: 2016, June 20].
    38. ZASTUPITELSKÝ ÚŘAD ČR V MOSKVĚ. © 2016b. Russia: Trade and economic cooperation with the Czech Republic [in Czech: Rusko: Obchodní a ekonomická spolupráce s ČR]. BusinessInfo.cz [Online]. Available at: www.businessinfo.cz/cs/clanky/rusko-obchodni-a-ekonomicka-spoluprace-s-cr-19086.html [Accessed: 2016, June 20].
    39. ŽÍDEK, L. 2011. Czech trade intregration over the last two decades. Acta universitatis agriculturae et silviculturae Mendelianae Brunensis., 59(7): 507 - 517. DOI: 10.11118/actaun201159070507 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content