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International Trade in Outermost Europe: A Comparative Analysis of Mayotte Island and French Overseas Departments

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  • Fabien Candau
  • Serge Rey

Abstract

This article analyzes determinants of exports and imports by French overseas departments and reveals insights into the market access of these ultra-peripheral regions. Special attention focuses on Mayotte Island, which will take on the status of the "Outermost Region of Europe" in 2014. The estimates, based on gravity models, show that (a) economic crises in a partner country hinders imports from French overseas departments; (b) immigration, a serious concern in Mayotte, has a significant, negative impact on the trade deficit, by both raising imports and reducing exports; (c) historical colonial links can still explain trade; and (d) a common language with the partner country boosts exports from Mayotte more than exports from other overseas departments.

Suggested Citation

  • Fabien Candau & Serge Rey, 2014. "International Trade in Outermost Europe: A Comparative Analysis of Mayotte Island and French Overseas Departments," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 123-146, June.
    • Handle: RePEc:liu:liucej:v:11:y:2014:i:1:p:123-146
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    References listed on IDEAS

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    12. Fabien Candau & Serge Rey, 2014. "International Trade in Outermost Europe: A Comparative Analysis of Mayotte Island and French Overseas Departments," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 123-146, June.
    13. Head, Keith & Mayer, Thierry & Ries, John, 2009. "How remote is the offshoring threat?," European Economic Review, Elsevier, vol. 53(4), pages 429-444, May.
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    17. Fabien Candau & Michaël Goujon & Jean-François Hoarau & Serge Rey, 2014. "Real exchange rate and competitiveness of an EU's ultra-peripheral region: La Reunion Island," International Economics, CEPII research center, issue 137, pages 1-21.
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    Cited by:

    1. Florent DEISTING & Serge REY, 2015. "Determinants Of Tourism In French Overseas Departments And Collectivities," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 215-230.
    2. Fabien Candau & Serge Rey, 2014. "International Trade in Outermost Europe: A Comparative Analysis of Mayotte Island and French Overseas Departments," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 123-146, June.
    3. Florent DEISTING & Serge REY, 2015. "Determinants Of Tourism In French Overseas Departments And Collectivities," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 215-230.

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    More about this item

    Keywords

    Ultra-peripheral European regions; Mayotte; Gravity model;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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