Comparative Analysis of Determinants of Trade in Services: Cases of Ireland and United Kingdom
|Author:||Bc. Ira Saktor|
|Year:||2016 - summer|
|Leaders:|| doc. Ing. Vladimír Benáček CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis aims to estimate determinants of Services Export from Ireland and United Kingdom.
The main contribution of the research lies in the multiple aggregations and categories at which the
determinants are examined. Also, this thesis is up to date, to the best knowledge of the author, one
of the most exhaustive and deep studies applying gravity model of trade to the exports of services.
The core of this thesis consists of the evaluation of determinants for Travel and Business Travel
for both, Ireland and United Kingdom; and subsequent analysis of the differences. Furthermore,
other categories are discussed. Gravity Model with additional explanatory variables is estimated
using the Poisson Pseudo-Maximum Likelihood estimator and robust inference is based on large
sample properties. We find that the impact of distance largely depends on category for which the
model is estimated. Moreover, we have found substantial impact of both trading partners’ GDP
and perhaps surprisingly, relatively large and statistically significant impact of common legal
origins, regardless of category and aggregation. On the other hand, we have found no evidence of
significant impact of trade agreements.