Analyzing the Determinants of Service Trade Flows Between Vietnam and the European Union: A Gravity Model Approach
This paper analyzes the determinants of service trade flows between Vietnam and the
European Union. In this respect, a gravity model has been estimated with panel data and pooled, random and fixed effect estimation, covering the period of ten years from 2002 to 2011, for total service trade flows, service exports, and service imports between Vietnam and the European Union separately. The estimated results indicate that the service trade flows between Vietnam and its European partner countries are determined by the GDP per capita gap between Vietnam and EU countries, the population of EU countries, the real effective exchange rates, colonial relationship and being former members of the Council of Mutual Economic Assistance