IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v12y2007i3p13.html
   My bibliography  Save this article

Trade Potential and Among Indian Ocean Border Countries: Application of the Gravity Model

Author

Listed:
  • Hossein Karimi Hosnijeh

    (Assistant Prof. Department of Economics, University of Isfahan)

Abstract

Recent development in the globalization process and interdependence of national economic follow the importance of financial market, economic liberalization policies, technology capital and laber mobility, expansion of consumption market. In this instance, economic integration, expanding trade flows, reduction of barriers and trade constraints are the main activities of national economies. Looking towards to regional union, trade flows, integration could facilitate the process of trade liberalization to help the more cooperation between partners to inter national economics. The propose of this paper is two fold. First examine the succees and failure of the existing preferential trade agreements and regional economic groupings among the IOR-ARC countries. Secondly using the generalized gravity model and panel data during 1999-2004, explains the estimation results. The results show that IOR-ARC potential trade including Iran, while export to others excluding Iran would increase lay 35 percent, would increase 20 percent. Imports from nonmember could be 15 percent higher as the gravity model predictsgh.

Suggested Citation

  • Hossein Karimi Hosnijeh, 2007. "Trade Potential and Among Indian Ocean Border Countries: Application of the Gravity Model," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 12(3), pages 13-23, fall & wi.
    • Handle: RePEc:eut:journl:v:12:y:2007:i:3:p:13
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20073-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ceglowski, Janet, 2000. "Has the border narrowed?," The North American Journal of Economics and Finance, Elsevier, vol. 11(1), pages 61-75, August.
    2. Arie Arnon & Avia Spivak & J. Weinblatt, 1996. "The Potential For Trade Between Israel, The Palestinians and Jordan," The World Economy, Wiley Blackwell, vol. 19(1), pages 113-134, January.
    3. Nilsson, Lars, 2000. "Trade integration and the EU economic membership criteria," European Journal of Political Economy, Elsevier, vol. 16(4), pages 807-827, November.
    Full references (including those not matched with items on IDEAS)

    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. Enrique Martínez-Galán & Maria-Paula Fontoura & Isabel Proença, 2005. "Trade Potential In An Enlarged European Union: A Recent Approach," International Trade 0508011, University Library of Munich, Germany.
    2. Pedro E. Moncarz, 2010. "Determinantes del comercio de servicios financieros Potencial de exportaciones para los países sudamericanos," Documentos de trabajo 2010019, Banco Central del Uruguay.
    3. José Manuel Martins Caetano & Aurora Galego, 2003. "An Analysis of Actual and Potential Trade between the EU Countries and the Eastern European Countries," Economics Working Papers 3_2003, University of Évora, Department of Economics (Portugal).
    4. Leng, Zhihui & Shuai, Jing & Sun, Han & Shi, Zhiyao & Wang, Zihan, 2020. "Do China's wind energy products have potentials for trade with the “Belt and Road” countries? -- A gravity model approach," Energy Policy, Elsevier, vol. 137(C).
    5. Jagdambe, Subhash & Kannan, Elumalai, 2020. "Effects of ASEAN-India Free Trade Agreement on agricultural trade: The gravity model approach," World Development Perspectives, Elsevier, vol. 19(C).
    6. Nazir Muhammad Abdullahi & Xuexi Huo & Qiangqiang Zhang & Aminah Bolanle Azeez, 2021. "Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.
    7. Koji Kubo, 2014. "Myanmar's non-resource export potential after the lifting of economic sanctions: a gravity model analysis," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 21(1), pages 1-22, June.
    8. Geetha Ravishankar Author name: Marie Stack, 2013. "The Gravity Model and Trade Efficiency: A Stochastic Frontier Analysis of Potential Trade," NBS Discussion Papers in Economics 2013/04, Economics, Nottingham Business School, Nottingham Trent University.
    9. Cemaleddin Gulenay & Ibrahim Guran Yumusak, 2023. "Analyzing Common Market Options in the Scope of OIC," International Econometric Review (IER), Econometric Research Association, vol. 15(2), pages 28-44, September.
    10. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    11. Bouvatier, Vincent & Delatte, Anne-Laure, 2015. "Waves of international banking integration: A tale of regional differences," European Economic Review, Elsevier, vol. 80(C), pages 354-373.
    12. Depken, Craig II & Sonora, Robert J., 2002. "International price volatility: Evidence from U.S. and Mexican cities," The North American Journal of Economics and Finance, Elsevier, vol. 13(2), pages 179-193, August.
    13. Adil Khan Miankhel & Kaliappa Kalirajan & Shandre M. Thangavelu, 2014. "Australia's export potential: an exploratory analysis," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(2), pages 230-246, April.
    14. Disdier, Anne-Celia & Mayer, Thierry, 2004. "How different is Eastern Europe? Structure and determinants of location choices by French firms in Eastern and Western Europe," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 280-296, June.
    15. De Benedictis Luca & Vicarelli Claudio, 2005. "Trade Potentials in Gravity Panel Data Models," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-33, September.
    16. Peter Egger, 2001. "European Integration in Trade and FDI: A Dynamic Perspective," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(02), pages 30-35, October.
    17. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    18. Kiril I. Tochkov, 2018. "Trade Potential and Trade Integration of the Russian Far East: A Regional Perspective," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 21-38.
    19. Matthew McPherson & William Trumbull, 2003. "What If U.S.-Cuban Trade Were Based on Fundamentals Instead of Political Policy? Estimating Potential Trade with Cuba," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 13.
    20. Isabel Proença & Maria Fontoura & Enrique Martínez-Galán, 2008. "Trade in the enlarged European Union: a new approach on trade potential," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 7(3), pages 205-224, December.

    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:eut:journl:v:12:y:2007:i:3:p:13. 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: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    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.