ANALYSIS OF VIETNAM’S AGRICULTURAL EXPORTS TO THE EU MARKET

Abstract

The paper employs the extended gravity model and panel data set to analyze the factors affecting Vietnam's agricultural exports, a developing country, to EU, the developed market for the period of 2005-2016. Our empirial results based on the gravity equation show that while the factors: GDP per capita, population, the institutional quality and the dummy “WTO” have a positive impact, whereas the gap geography, technology gap has an impeding impact agricultural exports. Based on these results, the paper suggests some solutions to boost agricultural exports to the EU market.