IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v73y2022icp441-454.html
   My bibliography  Save this article

Analyzing energy trade policy in Central Asia using the intercountry trade force approach

Author

Listed:
  • Rasoulinezhad, Ehsan
  • Sung, Jinsok
  • Talipova, Amina
  • Taghizadeh-Hesary, Farhad

Abstract

The main purpose of this study is to examine the energy trade pattern of Central Asian economies, which are regarded as significantly rich in natural resources. To this end, the generalized method of moments (GMM) based on the intercountry trade force approach, and data from 2001–2018 are employed. The empirical results confirm the significant impacts of the gravity index, free space of trade, and urbanization level in shaping Central Asia’s energy trade patterns. Our main conclusion is that variables have different impacts on the trade directions of imports and exports. In addition, geographical location and language factors are crucial for shaping the energy trade policies of Central Asia. The study’s main economic policy implication is in fostering the free flow of energy to achieve better economic integration in Central Asia. In addition, to promote the energy infrastructure of the region, cooperation and participation of the countries in regional projects like the Belt and Road Initiative (BRI) of China is recommended.

Suggested Citation

  • Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    • Handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:441-454
    DOI: 10.1016/j.eap.2021.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592621001739
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2021.12.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eshchanov, Bahtiyor R. & Grinwis Plaat Stultjes, Mona & Eshchanov, Ruzumboy A. & Salaev, Sanaatbek K., 2013. "Prospects of renewable energy penetration in Uzbekistan—Perception of the Khorezmian people," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 789-797.
    2. Laldjebaev, Murodbek & Morreale, Stephen J. & Sovacool, Benjamin K. & Kassam, Karim-Aly S., 2018. "Rethinking energy security and services in practice: National vulnerability and three energy pathways in Tajikistan," Energy Policy, Elsevier, vol. 114(C), pages 39-50.
    3. Martínez-Zarzoso Inmaculada & Klasen Stephan & Nowak-Lehmann D. Felicitas & Larch Mario, 2009. "Does German Development Aid Promote German Exports?," German Economic Review, De Gruyter, vol. 10(3), pages 317-338, August.
    4. Taghizadeh-Hesary, Farhad & Sarker, Tapan & Yoshino, Naoyuki & Mortha, Aline & Vo, Xuan Vinh, 2021. "Quality infrastructure and natural disaster resiliency: A panel analysis of Asia and the Pacific," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 394-406.
    5. repec:bla:germec:v:10:y:2009:i::p:317-338 is not listed on IDEAS
    6. Gómez, Antonio & Dopazo, César & Fueyo, Norberto, 2015. "The future of energy in Uzbekistan," Energy, Elsevier, vol. 85(C), pages 329-338.
    7. Kahouli, Bassem & Maktouf, Samir, 2015. "The determinants of FDI and the impact of the economic crisis on the implementation of RTAs: A static and dynamic gravity model," International Business Review, Elsevier, vol. 24(3), pages 518-529.
    8. Faqin Lin, 2015. "Estimating the effect of the Internet on international trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(3), pages 409-428, April.
    9. Lee, Yusin, 2014. "Opportunities and risks in Turkmenistan’s quest for diversification of its gas export routes," Energy Policy, Elsevier, vol. 74(C), pages 330-339.
    10. Gassmann, Franziska, 2014. "Switching the lights off: The impact of energy tariff increases on households in the Kyrgyz Republic," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 755-769.
    11. Ehsan Rasoulinezhad & Gil Seong Kang, 2016. "A Panel Data Analysis of South Korea’s Trade with OPEC Member Countries: The Gravity Model Approach," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(2), pages 203-224, Spring.
    12. Liu, Melisande F.M. & Pistorius, Till, 2012. "Coping with the energy crisis: Impact assessment and potentials of non-traditional renewable energy in rural Kyrgyzstan," Energy Policy, Elsevier, vol. 44(C), pages 130-139.
    13. Yang, Yiwen & Lin, Chinho, 2021. "Impact of the “Belt and Road Initiative” on machinery production networks," Economic Modelling, Elsevier, vol. 104(C).
    14. Dorian, James P., 2006. "Central Asia: A major emerging energy player in the 21st century," Energy Policy, Elsevier, vol. 34(5), pages 544-555, March.
    15. Cobanli, Onur, 2014. "Central Asian gas in Eurasian power game," Energy Policy, Elsevier, vol. 68(C), pages 348-370.
    16. Karatayev, Marat & Hall, Stephen & Kalyuzhnova, Yelena & Clarke, Michèle L., 2016. "Renewable energy technology uptake in Kazakhstan: Policy drivers and barriers in a transitional economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 120-136.
    17. van Tol, M.C.M. & Moncada, J.A. & Lukszo, Z. & Weijnen, M., 2021. "Modelling the interaction between policies and international trade flows for liquid biofuels: an agent-based modelling approach," Energy Policy, Elsevier, vol. 149(C).
    18. Dahl, Carol & Kuralbayeva, Karlygash, 2001. "Energy and the environment in Kazakhstan," Energy Policy, Elsevier, vol. 29(6), pages 429-440, May.
    19. Kedar Mehta & Mathias Ehrenwirth & Christoph Trinkl & Wilfried Zörner & Rick Greenough, 2021. "The Energy Situation in Central Asia: A Comprehensive Energy Review Focusing on Rural Areas," Energies, MDPI, vol. 14(10), pages 1-27, May.
    20. Junxia, Liu, 2019. "Investments in the energy sector of Central Asia: Corruption risk and policy implications," Energy Policy, Elsevier, vol. 133(C).
    21. Doukas, Haris & Marinakis, Vangelis & Karakosta, Charikleia & Psarras, John, 2012. "Promoting renewables in the energy sector of Tajikistan," Renewable Energy, Elsevier, vol. 39(1), pages 411-418.
    22. MacGregor, James, 2017. "Determining an optimal strategy for energy investment in Kazakhstan," Energy Policy, Elsevier, vol. 107(C), pages 210-224.
    23. Batsaikhan, Uuriintuya & Dabrowski, Marek, 2017. "Central Asia — twenty-five years after the breakup of the USSR," Russian Journal of Economics, Elsevier, vol. 3(3), pages 296-320.
    24. Farhad Taghizadeh Hesary & Naoyuki Yoshino & Ghahraman Abdoli & Asadollah Farzinvash, 2013. "An Estimation of the Impact of Oil Shocks on Crude Oil Exporting Economies and Their Trade Partners," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 8(4), pages 571-591, December.
    25. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Rasoulinezhad, Ehsan & Chang, Youngho, 2019. "Trade linkages and transmission of oil price fluctuations," Energy Policy, Elsevier, vol. 133(C).
    26. Li, Guo & Zakari, Abdulrasheed & Tawiah, Vincent, 2020. "Energy resource melioration and CO2 emissions in China and Nigeria: Efficiency and trade perspectives," Resources Policy, Elsevier, vol. 68(C).
    27. Dorian, James P. & Abbasovich, Utkur Tojiev & Tonkopy, Mikhail S. & Jumabekovich, Obozov Alaibek & Daxiong, Qiu, 1999. "Energy in central Asia and northwest China: major trends and opportunities for regional cooperation," Energy Policy, Elsevier, vol. 27(5), pages 281-297, May.
    28. Mazhikeyev, Arman & Edwards, T. Huw & Rizov, Marian, 2015. "Openness and isolation: The trade performance of the former Soviet Central Asian countries," International Business Review, Elsevier, vol. 24(6), pages 935-947.
    29. Karimov, Akmal Kh. & Smakhtin, Vladimir & Karimov, Aziz A. & Khodjiev, Khalim & Yakubov, Sadyk & Platonov, Alexander & Avliyakulov, Mirzaolim, 2018. "Reducing the energy intensity of lift irrigation schemes of Northern Tajikistan- potential options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2967-2975.
    30. Grafe, Clemens & Raiser, Martin & Sakatsume, Toshiaki, 2008. "Beyond borders--Reconsidering regional trade in Central Asia," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 453-466, September.
    31. Robi Kurniawan & Shunsuke Managi, 2018. "Economic Growth and Sustainable Development in Indonesia: An Assessment," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 54(3), pages 339-361, September.
    32. Ehsan Rasoulinezhad, 2018. "A new evidence from the effects of Russia’s WTO accession on its foreign trade," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 73-92, April.
    33. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    34. Andrej Krickovic, 2014. "Imperial nostalgia or prudent geopolitics? Russia's efforts to reintegrate the post-Soviet space in geopolitical perspective," Post-Soviet Affairs, Taylor & Francis Journals, vol. 30(6), pages 503-528, November.
    35. Ehsan Rasoulinezhad, 2019. "The Sanctions and Geographical Shift in Trading Partners: Evidence from Iran and Russia through a Gravity Model," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(3), pages 593-610, Summer.
    36. Klueh, Ulrich H. & Pastor, Gonzalo & Segura, Alonso, 2009. "Policies to improve the local impact from hydrocarbon extraction: Observations on West Africa and possible lessons for Central Asia," Energy Policy, Elsevier, vol. 37(3), pages 1128-1144, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Cuixia & Tao, Simin & Su, Bin & Mensah, Isaac Adjei & Sun, Mei, 2023. "Exploring renewable energy trade coopetition relationships: Evidence from belt and road countries, 1996-2018," Renewable Energy, Elsevier, vol. 202(C), pages 196-209.
    2. Zhao, Jun & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "Is income inequality a stumbling block to the global natural gas market?," Energy Economics, Elsevier, vol. 118(C).
    3. Wang, Hui & Si, Ieongcheng & Chen, Zhihua, 2024. "Does the Belt and Road Initiative promote China and the countries along the route to reconstruct the global value chain? Evidence from value-added trade," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 63-83.
    4. Li’ao Song & Cheng Jin, 2024. "RETRACTED ARTICLE: Tailoring social welfare and energy transition for an aging population," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-15, April.
    5. Yuping Jin & Yanbin Yang & Wei Liu, 2022. "Finding Global Liquefied Natural Gas Potential Trade Relations Based on Improved Link Prediction," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    6. Olzhas Turemuratov & Bibigul Byulegenova & Sergey Pogodin & Marina Onuchko & Roza Nurtazina, 2024. "Urbanization Trends in Central Asian Countries: Aspects of Extensive and Intensive Agglomeration Growth," Public Organization Review, Springer, vol. 24(3), pages 963-986, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Otrachshenko, Vladimir & Hartwell, Christopher A. & Popova, Olga, 2023. "Energy efficiency, market competition, and quality certification: Lessons from Central Asia," Energy Policy, Elsevier, vol. 177(C).
    2. Elena Shadrina, 2020. "Non-Hydropower Renewable Energy in Central Asia: Assessment of Deployment Status and Analysis of Underlying Factors," Energies, MDPI, vol. 13(11), pages 1-29, June.
    3. Hiroyuki Taguchi & Aktamov Asomiddin, 2022. "Energy-Use Inefficiency and Policy Governance in Central Asian Countries," Energies, MDPI, vol. 15(4), pages 1-15, February.
    4. Kedar Mehta & Mathias Ehrenwirth & Christoph Trinkl & Wilfried Zörner & Rick Greenough, 2021. "The Energy Situation in Central Asia: A Comprehensive Energy Review Focusing on Rural Areas," Energies, MDPI, vol. 14(10), pages 1-27, May.
    5. Taguchi, Hiroyuki, 2022. "Energy use inefficiency and policy governance: the case of Central Asian countries," MPRA Paper 111932, University Library of Munich, Germany.
    6. Tavana, Madjid & Pirdashti, Mohsen & Kennedy, Dennis T. & Belaud, Jean-Pierre & Behzadian, Majid, 2012. "A hybrid Delphi-SWOT paradigm for oil and gas pipeline strategic planning in Caspian Sea basin," Energy Policy, Elsevier, vol. 40(C), pages 345-360.
    7. Ehsan Rasoulinezhad, 2018. "A new evidence from the effects of Russia’s WTO accession on its foreign trade," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 73-92, April.
    8. Karatayev, Marat & Hall, Stephen & Kalyuzhnova, Yelena & Clarke, Michèle L., 2016. "Renewable energy technology uptake in Kazakhstan: Policy drivers and barriers in a transitional economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 120-136.
    9. Aliya Aktymbayeva & Arailym Orazgaliyeva & Aizhan Omarova & Anvar Tulaganov & Aigul Akhmetova & Yuliya Tyurina & Marija Troyanskaya, 2021. "The Central Asian Economies of Water-energy security: The Future Role of Hydro and Fuel-based Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 417-425.
    10. Rasoulinezhad, Ehsan, 2020. "Energy Trade and Economic Integration between the Commonwealth Independent States and China," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 172-190.
    11. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Fukuda, Lisa & Rasoulinezhad, Ehsan, 2021. "A model for calculating optimal credit guarantee fee for small and medium-sized enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 361-373.
    12. Kong, Zhaoyang & Lu, Xi & Jiang, Qingzhe & Dong, Xiucheng & Liu, Guixian & Elbot, Noah & Zhang, Zhonghua & Chen, Shi, 2019. "Assessment of import risks for natural gas and its implication for optimal importing strategies: A case study of China," Energy Policy, Elsevier, vol. 127(C), pages 11-18.
    13. Gnangnon, Sèna Kimm & Iyer, Harish, 2018. "Does bridging the Internet Access Divide contribute to enhancing countries' integration into the global trade in services markets?," Telecommunications Policy, Elsevier, vol. 42(1), pages 61-77.
    14. Sun, Yunpeng & Gao, Pengpeng & Tian, Wenjuan & Guan, Weimin, 2023. "Green innovation for resource efficiency and sustainability: Empirical analysis and policy," Resources Policy, Elsevier, vol. 81(C).
    15. Bunje, Madinatou Yeh & Abendin, Simon & Wang, Yin, 2022. "The multidimensional effect of financial development on trade in Africa: The role of the digital economy," Telecommunications Policy, Elsevier, vol. 46(10).
    16. Adina DORNEAN & Dumitru-Cristian OANEA, 2015. "Impact Of The Economic Crisis On Fdi In Central And Eastern Europe," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 16, pages 53-68, December.
    17. Junxia, Liu, 2019. "Investments in the energy sector of Central Asia: Corruption risk and policy implications," Energy Policy, Elsevier, vol. 133(C).
    18. Sebastian Kripfganz & Claudia Schwarz, 2019. "Estimation of linear dynamic panel data models with time‐invariant regressors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(4), pages 526-546, June.
    19. Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    20. Valentine Soumtang Bime & Dieudonné Mignamissi & Agathe Cassandra Koumis Ngagni, 2024. "Does financial openness matter for economic transformation in sub-Saharan Africa?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-49, April.

    More about this item

    Keywords

    Energy trade policy; Intercountry trade force (ITF) theory; Dynamic panel data; Central Asia;
    All these keywords.

    JEL classification:

    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:441-454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.