Trade flows between the European Union and Latin America : a gravity model

Abstract

The increase of the economic and political relations among countries allows us to direct our attention to the approximation of the European Union and the countries of Latin America. In this paper there are studied and analyze the commercial flows added among several countries of the European Union and Latin America during the period 1995-2013. The analysis is carried out across the specification and estimation of a gravity equation that collect the impact that has on the international trade variable as the income of the countries that trade, the population, the distance that separates them as measure of the costs of transport and another variable across which we can observe if they share maritime border.