The European Journal of Comparative Economics

ISSN: 1824-2979

EJCE Year: 2014, June. Volume: 11 - Issue: 1

International Trade in Outermost Europe: A Comparative Analysis of Mayotte Island and French Overseas Departments

by Fabien Candau ; Serge Rey

Start page: 123 - End page: 146

Keywords: Ultra-peripheral European regions; Mayotte; Gravity model

Jel code: C5; F14; O15

Abstract:

This article analyzes determinants of exports and imports by French overseasdepartments and reveals insights into the market access of these ultra-peripheral regions. Special attention focuses on Mayotte Island, which will take on the status of the "Outermost Region of Europe" in 2014. The estimates, based on gravity models, show that (a) economic crises in a partner country hinders imports from French overseas departments; (b) immigration, a serious concern in Mayotte, has a significant, negative impact on the trade deficit, by both raising imports and reducing exports; (c) historical colonial links can still explain trade; and (d) a common language with the partner country boosts exports from Mayotte more than exports from other overseas departments.

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