Determinants of Vietnam’s export to EU market

Abstract

The paper uses the gravity model and panel data to examine the determinants of Vietnam's export to the EU market during the 2007-2017 period. The article uses the Hausman-Taylor estimator for the optimal combination of Fixed-Effects (FE) and Random-Effects (RE) methods. The estimation results indicate that the determinants of Vietnam's export to the EU market include: aggregate population (+2,512); aggregate GDP per capita (+1,256); Vietnam's index of infrastructure (+0,824) and aggregate trade openness (+0,377). Based on these results, the paper suggests policies to boost Vietnam's export to the EU.