Acta Oeconomica Pragensia 2014, 22(2):33-47 | DOI: 10.18267/j.aop.430

Application of the Decision Support Model to Czech Exports

Matěj Urban, Michal Mejstřík, Jana Gutierrez Chvalkovská
Matěj Urban, EEIP, a.s., Praha; Michal Mejstřík, Charles University in Prague; Jana Chvalkovská, Charles University in Prague (matej.urban@eeip.cz).

In this paper, we present our own modification of the Export Decision Support Model (EDSM) and its application on evaluation of export opportunities for Czech companies. The main objective of the model is to identify export opportunities which might help to target the export promotion policy of the Czech Republic. The EDSM methodology is based on sequential elimination of less interesting markets. We have amended and calibrated the EDSM for the Czech Republic and created a new variable - our Index of Export Opportunities - which classifies markets depending on their suitability for export. Calibration was performed on a data sample covering global trade data from 2006 to 2012. The results of the model have been used as a tool for an evidence-based export promotion policy in the Czech Republic. The results were tested by the real foreign demand for Czech products in specific industries and importing countries based on information from Czech embassies and trade promotion organisations.

Keywords: export, export decision support model, index of export opportunities, export strategy, simulation, calibration
JEL classification: F13, F14

Published: April 1, 2014  Show citation

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Urban, M., Mejstřík, M., & Gutierrez Chvalkovská, J. (2014). Application of the Decision Support Model to Czech Exports. Acta Oeconomica Pragensia, 22(2), 33-47. doi: 10.18267/j.aop.430
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