What role geographical distances and cultural proximity play in bilateral wine trade of Hungary?

Balogh, Jeremiás Máté: What role geographical distances and cultural proximity play in bilateral wine trade of Hungary? New Ideas in a Changing World of Business Managament and Marketing. pp. 35-45. (2015)

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Abstract

Wine plays an important role in Hungary as well historically and culturally. Hungary export wines to different part of the world, consequently the Hungarian wine trade could be influenced by geographical and cultural factors. The effect of the cultural and geographical proximity on international trade has already proven in international trade literature. The size of bilateral trade flows between any two countries can be approximated by the so-called Gravitation Theory of trade. The gravity equation is empirical evidence for relationship between the size of economies, their distances and the amount of their trade. The aim of my paper is to analyse the effect of cultural and geographical proximity on bilateral wine trade between Hungary and its trading partners employing gravity model for a period of 2000 and 2012. The panel data of analysis is derived from World Bank WITS, WDI and CEPII, WTO databases. The explanatory variables of the model are geographical distance, common language and ethnography, contiguity, landlocked plus bilateral WTO memberships. I apply OLS, Random Effect and Pseudo Poisson-Maximum-Likelihood estimator to calculate the gravity equation. The results show that in case of Hungary cultural similarity and trade liberalisation have positive while geographical distance, landlocking and contiguity have negative impact on wine export.

Item Type: Article
Journal or Publication Title: New Ideas in a Changing World of Business Managament and Marketing
Date: 2015
Page Range: pp. 35-45
Uncontrolled Keywords: Borkereskedelem - Magyarország
Additional Information: Bibliogr: p. 44-45. ; összefoglalás angol nyelven
Date Deposited: 2019. May. 28. 13:50
Last Modified: 2019. May. 28. 13:50
URI: http://acta.bibl.u-szeged.hu/id/eprint/57767

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