Abstract:

Purpose – The aim of this paper is to investigate the impact of the economic, trade policy and political factors, along with the traditional factors, like economic size and distance on the electronics trade flows of Romania before and after the EU integration. Design / Methodology / Approach – An augmented gravity model was used, including traditional variables as GDP, distance between countries, EU membership and common border, as well as nontraditional ones, as trade openness, political stability, inflation. A balanced panel approach was used and EViews 10 was used for regression. Findings - For Romanian trading partners, the findings are in line with the previous studies, but some atypical results were found for Romanian variables. Practical Implications – A deeper understanding of the dynamics of the Romanian electronic trade flows should be considered by the Romanian trade deciders and the impact of the trade openness and of the political stability should be taken into account. Originality / Value – Combining the traditional and nontraditional factors, including economical, political and trade policy ones, electronics trade flows determinants lead to some atypical findings for Romania. Limitations – Further research should be performed to study separately the Romanian electronics’ exports, re-exports, as well as electronics’ parts as components.