BILATERAL TRADE AND ENERGY RELATIONS BETWEEN THE EU AND THE COUNTRIES OF THE CASPIAN SEA REGION

Authors

DOI:

https://doi.org/10.35774/jee2020.01.047

Keywords:

International trade, energy trade, European Union, Caspian region, gravity model.

Abstract

The European Union and the Caspian countries are important trade partners, although there is still potential for improvement of the cooperation considering the energy security and other issues. The paper analyses trends and structure of trade relations of the EU and Caspian countries. The trade between the regions is about 370 billion dollars. Exports of fuels to the EU are the main component of the trade between the regions. Therefore energy transportation projects are an important issue in the agenda for the international relations. A gravity model for the exports of fuels is presented. The model considers demand in the EU importing country, total fuel exports of an exporting Caspian country as an indicator of exporting supply capacities and in some cases energy self-sufficiency of an importing country. Distance turned out to make an insignificant effect on the energy trade. The analysis helps to determine undertraded and successfully exploited bilateral energy trade links between the individual EU and Caspian countries. The model showed that Greece is among the most relatively intensive importers of fuels from the Caspian region.

JEL: F10, F13, F15, Q4. 

Author Biographies

Evangelos SISKOS, University of Western Macedonia

D. Sc. Econ, Professor, Department of International and European Economic Studies (Kozani)

Konstantia DARVIDOU, University of Western Macedonia

Ph. D. of International Economic Relations

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Published

09.03.2020

How to Cite

SISKOS, Evangelos, and Konstantia DARVIDOU. “BILATERAL TRADE AND ENERGY RELATIONS BETWEEN THE EU AND THE COUNTRIES OF THE CASPIAN SEA REGION”. Journal of European Economy, vol. 19, no. 1, Mar. 2020, pp. 47-64, doi:10.35774/jee2020.01.047.

Issue

Section

INTERNATIONAL ECONOMIC RELATIONS OF THE EUROPEAN COUNTRIES