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Commercial Relations Between Colombia and the European Union: An Empirical Approximation in the Light of the Gravity Model

In: Export Diversification and Economic Growth

Author

Listed:
  • Juan Felipe Mejía

    (EAFIT University)

Abstract

The current chapter examines the impact of the European Generalized System of Preferences on Colombian exports over the period 1990–2008. Based on the gravity model of international trade, an augmented gravity equation is tested, capturing economic, geographic, cultural, and institutional factors that are believed to exert an influence upon Colombian trade. The findings indicate that Colombian exports have positively benefited from the unilateral scheme of preferences offered by the European Union, and that this trade mechanism had a large and positive effect on Colombian exports within the period of time analyzed. But, as will be addressed in a next section, this is not synonymous to a more diversified export basket with the EU.

Suggested Citation

  • Juan Felipe Mejía, 2011. "Commercial Relations Between Colombia and the European Union: An Empirical Approximation in the Light of the Gravity Model," Contributions to Economics, in: Export Diversification and Economic Growth, chapter 0, pages 101-119, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2742-2_4
    DOI: 10.1007/978-3-7908-2742-2_4
    as

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