Register  |  Login  |  Inquiries  |  Sitemap |  
Advanced Search
Journal of Economic Integration 2011 June;26(2) :217-243.
DOI: https://doi.org/10.11130/jei.2011.26.2.217
Does More Trade Potential Remain in Arab States of the Gulf?

Ruhul A. Salim Mohammad Mahfuz Kabir Nasser Al Mawali 

Curtin University
Bangladesh Institute of International Strategic studies
Sultan Qaboos University
Copyright ©2011 Journal of Economic Integration
ABSTRACT

This paper examines whether the Gulf Cooperation Council Countries (GCC) exerted any trade enhancing impact on its members by employing standard augmented gravity model as well as stochastic frontier gravity model. Panel data sets are constructed over the period of 1980 to 2008 for imports and exports of the bloc's main trading partners along with GCC countries. The major finding is that the trade enhancing effect of the bloc is significant. However, there is still huge unutilized trade potential between the member countries. Several diagnostic tests were run to check and rectify possible problems of heteroskedasticity and autocorrelation as well as cross-sectional dependence.

JEL Classification: F15

Keywords: Gravity Model | Trade Effect | Contemporaneous Correlation | Trade Potential | GCC
 
REFERENCE
1. Al-Atrash, H. and Yousef, T. (2000), Intra-Arab Trade: Is It Too Little? IMF Working Paper 00/10, Washington, DC: International Monetary Fund.
2. Anderson, J. and van Wincoop, E. (2004), Trade Costs, Working Paper # 10480, National Bureau of Economic Research, Massachusetts.
3. Anderson, J. E. and van Wincoop, E. (2003), Gravity with Gravitas: A Solution to the Border Puzzle, American Economic Review, 93, 170-192.
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
  Print
Share:      
METRICS
10
Crossref
0
Scopus
4,331
View
49
Download
Editorial Office
Center for Economic Integration, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-6935-2492   E-mail : editorial.office@e-jei.org
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration.      Developed in M2PI