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

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 tra...

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Elmentve itt :
Bibliográfiai részletek
Szerző: Balogh Jeremiás Máté
Dokumentumtípus: Könyv része
Megjelent: 2015
Sorozat:New Ideas in a Changing World of Business Managament and Marketing
Kulcsszavak:Borkereskedelem - Magyarország
Online Access:http://acta.bibl.u-szeged.hu/57767
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520 3 |a 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. 
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