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Export Sophistication and Bilateral Trade in Mauritius: An Extended Gravity Model Approach

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Development and Sustainable Growth of Mauritius

Part of the book series: Contemporary African Political Economy ((CONTAPE))

Abstract

Recent literature highlights the importance of export sophistication on countries’ economic performance. The empirical studies on export sophistication have, by and large, focused on its effect on economic growth. In contrast, this study adopts a new perspective in that the export sophistication of nations can also be a driver of bilateral trade. This study aims to investigate, using annual data from 1995 to 2013, whether there is evidence to support an export sophistication-led trade hypothesis using an extended panel of the gravity model framework for Mauritius. The aim of this study is twofold: firstly, to examine the export sophistication of Mauritius and, secondly, to investigate the export sophistication of the trading partner. Overall, the estimation results provide evidence to support both cases, in that the sophistication of trading nations, domestic and trading partners, has a positive and significant role to play in sustaining exports. The results also reveal that Mauritius’s exports are positively related to the preferential trade agreements in place, colonial and island links, and the income of trading partner countries.

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Author information

Authors and Affiliations

  1. School of Accounting, Economics & Finance, University of KwaZulu-Natal, Durban, South Africa

    Vanessa T. Tang

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  1. Vanessa T. Tang
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Correspondence to Vanessa T. Tang .

Editor information

Editors and Affiliations

  1. School of Accounting, Economics & Finance, University of KwaZulu-Natal, Durban, South Africa

    Vanessa T. Tang

  2. Department of Conflict Resolution, Human Security & Global Governance, University of Massachusetts, Boston, MA, USA

    Timothy M. Shaw

  3. University of KwaZulu-Natal, Durban, South Africa

    Merle G. Holden

Appendices

Appendix 1

The dataset comprises 285 observations over the time period 1995–2013. The countries included in the study numbered 15 in total. These countries are the key export partners that traded with Mauritius over the period of study.

Table 6.3 List of countries: Key export partners
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Appendix 2

Table 6.4 Data description and sources
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Appendix 3

Table 6.5 Unit root results
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Appendix 4

Table 6.6 Correlation results
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Tang, V.T. (2019). Export Sophistication and Bilateral Trade in Mauritius: An Extended Gravity Model Approach. In: Tang, V., Shaw, T., Holden, M. (eds) Development and Sustainable Growth of Mauritius. Contemporary African Political Economy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-96166-8_6

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