Determinants of Paraná´s exports between 2000 and 2012: An application of gravity model

The Paraná's exports, between 2000 and 2012, grew by 302,27%. This increase in exports may lead to higher growth in the state. Thus, the aim of this study was to analyze the determinants of exports Paraná between 2000 and 2012 through the Gravity Model. The gravity equation was estimated with panel data and used as the dependent variable exports of Paraná and as independent variables the Gross Domestic Product (GDP) and the state's population, GDP and population of importing countries Paraná and the distance in kilometers between the state capital and capital importing country. We conclude that the GDP and population of the importing countries, and the distance between the state capital and capital importing country, were crucial to the state's exports. These variables were statistically significant, while the GDP and population of Paraná were not statistically significant and therefore were not determinants of the state's exports in this period