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Evidence on Euromediterranean Trade Integration: The Case of German Olive Oil Imports

Author

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  • Kavallari, Aikaterini
  • Maas, Sarah
  • Schmitz, P. Michael

Abstract

The deepening of the Barcelona Agreement and the discussions of the creation of a Mediterranean Union has awakened the interest of the non-EU Mediterranean countries to expand their exports to the European markets. This study analyses the factors that influence the German imports of olive oil by employing a gravity model. The results of two random-effects models corrected for serial correlation and heteroskedasticity suggest that being a Mediterranean Partner Country of the European Union has the highest impact on trade flows to Germany, thus supporting further Euromediterranean trade integration. Moreover, olive oil exports to Germany are positively related to the existence of direct marketing channels and to tourism. Therefore, these valuables should be explored more in the future by the Mediterranean countries so as to boost their exports. Die Vertiefung des Barcelona-Abkommens und die Diskussion über die Gründung einer Mediterranen Union haben das Interesse der mediterranen Drittländer geweckt, ihre Exporte an den europäischen Markt auszubauen. Diese Studie analysiert daher die Determinanten der deutschen Olivenölimporte an Hand eines Gravitationsmodells. Im Mittelpunkt steht hierbei die Frage, ob der Abschluss des Barcelona-Abkommens zu einer Stimulierung des Handels zwischen Deutschland und den mediterranen Drittländern geführt hat. Die Ergebnisse zweier Random-Effects- Modelle, korrigiert für Autokorrelation und Heteroskedastizität, zeigen, dass die Zugehörigkeit zu den mediterranen Partnerländern den stärksten Einfluss auf die Exporte nach Deutschland hat und unterstützen somit eine weitere Handelsintegration im euromediterranen Raum. Zudem ist der Handel mit Deutschland positiv mit dem Bestehen von direkten Absatzwegen und Tourismus verknüpft. Diese Einflussfaktoren sollten in Zukunft stärker von mediterranen Ländern genutzt werden, um ihre Olivenölexporte nach Deutschland auszuweiten.

Suggested Citation

  • Kavallari, Aikaterini & Maas, Sarah & Schmitz, P. Michael, 2010. "Evidence on Euromediterranean Trade Integration: The Case of German Olive Oil Imports," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(01), pages 1-7, March.
  • Handle: RePEc:ags:gjagec:145221
    DOI: 10.22004/ag.econ.145221
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    2. Kenichi Kashiwagi & Erraach Yamna & Lamia Arfa & Lokman Zaibet, 2020. "Growing Olive Oil Export and Intra-Industry Trade in Mediterranean Countries: Application of Gravity Model," Sustainability, MDPI, vol. 12(17), pages 1-16, August.

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