DETERMINANTS OF THE BILATERAL TRADE FLOWS OF NORTH MACEDONIA– A GRAVITY MODEL APPROACH

The paper makes an indetail overview of the structure trade exchange goods Macedonia and explores determinants its bilateral flows using gravity model. analysis includes data on 40 partners in period from 2005-2019. used variables model are: GDP per capita difference, population, distance relative endowments factors production (capital, land labour). In most analyzed regressions coefficients such as difference population are positive their impact upon (as dependent variable) is statistically significant. Intensity Macedonian decreases regard a partner increases partner’s size – country tends to more with lager countries. our we included three dummy as: membership EU CEFTA-2006 common language. possible clearly Being candidate for full membership, trades rather than neibouring countries, members CEFTA-2006. Keywords: trade, model, partners, Republic North Macedonia, European Union,