IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v20y2016i3p277.html
   My bibliography  Save this article

The Impact of Sanction on Bilateral Intra-Industry Trade between Iran and SCO Countries

Author

Listed:
  • Seyed-Rohollah Ahmadi

    (School of International Trade and Economics (SITE), University of International Business and Economics (UIBE), Beijing, China.)

Abstract

This paper analyses the impact of sanctions against Iran in addition to other country-specific determinants on intra-industry trade between Iran and Shanghai Cooperation Organization (SCO) countries over the period 1997-2013. By disentangling total intra-industry trade (IIT) into horizontal and vertical IIT and after investigating bilateral trade pattern between Iran and SCO countries, determinants of IIT, horizontal IIT and vertical IIT are assessed using fixed effect panel data. Using panel data model, two main findings are released. First, trade barriers indicators and difference in factor endowments are crucial in determining of IIT indicators. Second, sanction index does not have significant impact on IIT measures.

Suggested Citation

  • Seyed-Rohollah Ahmadi, 2016. "The Impact of Sanction on Bilateral Intra-Industry Trade between Iran and SCO Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(3), pages 277-293, Summer.
    • Handle: RePEc:eut:journl:v:20:y:2016:i:3:p:277
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20163-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yushi Yoshida & Nuno Carlos Leitão & Horácio Faustino, 2009. "Vertical Intra-Industry Trade and Foreign Direct Investment between Japan and European Countries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(4), pages 351-365, December.
    2. Thorpe Michael William & Leitão Nuno Carlos, 2013. "Determinants of United States’ Vertical and Horizontal Intra-Industry Trade," Global Economy Journal, De Gruyter, vol. 13(2), pages 233-250, June.
    3. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    4. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-939, December.
    5. Jeffrey H. Bergstrand & Peter Egger, 2006. "Trade Costs and Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 433-458, October.
    6. Marius Brülhart, 2009. "An Account of Global Intra‐industry Trade, 1962–2006," The World Economy, Wiley Blackwell, vol. 32(3), pages 401-459, March.
    7. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 77-100, March.
    8. Rosanna Pittiglio, 2012. "Horizontal and Vertical Intra-industry Trade: An Empirical Test of the ‘Homogeneity Hypothesis’," The World Economy, Wiley Blackwell, vol. 35(7), pages 919-945, July.
    9. Balassa, Bela, 1986. "The Determinants of Intra-industry Specialization in United States Trade," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 220-233, July.
    10. Yoshida, Yushi, 2013. "Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 125-138.
    11. Abdul K. M. Azhar & Robert J. R. Elliott, 2006. "On the Measurement of Product Quality in Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 476-495, October.
    12. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
    13. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    14. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    15. Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 131(1), pages 67-85, March.
    16. David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 799-836.
    17. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    18. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-822, December.
    19. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
    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. Pittiglio, Rosanna, 2009. "The Intra-industry Trade for a Highincome Country: New Empirical Evidence for Italy," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(2), pages 233-254.
    2. Muhammad Shahbaz & Nuno Carlos Leit o & Muhammad Sabihuddin Butt, 2012. "Pakistan Intra-Industry Trade: A Panel Data Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 225-232.
    3. Nuno Carlos Leitão, 2013. "The Impact of Immigration on Portuguese Intra-Industry Trade," Working Papers 2013.20, Fondazione Eni Enrico Mattei.
    4. Antonella Bellino & Giuseppe Celi, 2016. "The Role of Migration in the Variety and Quality of Trade: Evidence from Germany," German Economic Review, Verein für Socialpolitik, vol. 17(1), pages 1-25, February.
    5. Yushi Yoshida & Nuno Carlos Leitão & Horácio Faustino, 2008. "Intra-Industry Trade between Japan and European Countries: a Closer Look at the Quality Gap in VIIT," Working Papers Department of Economics 2008/53, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Vogiatzoglou, Klimis, 2005. "Varieties or Qualities? Horizontal and Vertical Intra-industry Trade within the NAFTA Trade Bloc," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-13.
    7. J. Hanna & L. L鶩 & S. Petit, 2015. "Intra-tourism trade, income distribution and tourism endowment: an econometric investigation," Applied Economics, Taylor & Francis Journals, vol. 47(21), pages 2184-2200, May.
    8. Roy, Jayjit, 2017. "On the environmental consequences of intra-industry trade," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 50-67.
    9. Leitão, Nuno Carlos, 2012. "Globalization and United States’ Intra-Industry Trade," MPRA Paper 39756, University Library of Munich, Germany.
    10. Imre Fertő & Szilárd Podruzsik & Jeremiás Balogh, 2016. "Intra-industry trade in the wine sector in the enlarged European Union," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(3), pages 159-172, November.
    11. Lukasz Ambroziak, 2012. "FDI and intra-industry trade: theory and empirical evidence from the Visegrad Countries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 180-198.
    12. Horácio Faustino & Nuno Leitão, 2007. "Intra-Industry Trade: A Static and Dynamic Panel Data Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(3), pages 313-333, August.
    13. Don Clark & Denise Stanley, 2003. "Determinants Of Intraindustry Trade Between The United States And Industrial Nations," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 1-17.
    14. BELLINO, Antonella & CELI, Giuseppe, 2016. "The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation," CELPE Discussion Papers 137, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    15. Nuno Carlos Leit o & Muhammad Shahbaz, 2012. "Liberalization and United States' Intra-Industry Trade," International Journal of Economics and Financial Issues, Econjournals, vol. 2(4), pages 505-512.
    16. Imre Ferto & Károly Attila Soós, 2012. "Controversial issues in factors determining intra-industry trade," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 132-148.
    17. repec:kap:iaecre:v:13:y:2007:i:3:p:313-333 is not listed on IDEAS
    18. Masoud Nonejad, 2012. "Measuring Goods Quality in Iran’s Intra- Industry Trade with G-8 Member States," Journal of Economics and Behavioral Studies, AMH International, vol. 4(6), pages 344-353.
    19. Nuno Carlos LEITÃO & Marius-Razvan SURUGIU & Camelia SURUGIU, 2014. "Romanian intra-industry trade: a panel data approach," EuroEconomica, Danubius University of Galati, issue 2(33), pages 7-18, November.
    20. Sourish Dutta, 2022. "Measuring Horizontal and Vertical Differentiation in Intra-industry Trade," Working Papers hal-03683580, HAL.
    21. Aggarwal, Sakshi & Chakraborty, Debashis, 2017. "Determinants of India’s Bilateral Intra-Industry Trade over 2001-15: Empirical Results," MPRA Paper 78020, University Library of Munich, Germany.

    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:20:y:2016:i:3:p:277. 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.