The impact of distance and integration on trade in an outermost region of Europe: Reunion IslandFrenchEnglish

International audience ; This article aims at analyzing the trade structure of La Reunion (exports and imports of products, HS6 digit level) over the period 1989–2008. First, we determined several indicators of geographic trade intensity, comparative advantage and openness. These later revealed that, in spite of significant trade costs, La Reunion succeeded in diversifying its trade partners even if France still remains the major one. Second, we estimated by the Poisson Pseudo-Maximum Likelihood and the Zero Inflated Poisson methods a gravity model of the panel consisting of La Reunion's yearly bilateral trade data with its trading partners. Then, the usual findings that are the importance of the colonial heritage, the distance and the GDP of La Reunion and of the trading partners are supported. Furthermore, we put forward the negative impact of the regional integration processes initiated by the European bloc (The European Union enlargement, the regional trade agreements with ACP countries) on the exports of La Reunion.