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A gravity model analysis for trade between the GCC and developed countries

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  • Sahar Hassan Khayat

Abstract

The study aimed to empirically analyse GCC’s trade patterns based on the gravity model. Gravity model is derived from physics and is used to explain the bilateral flow of trade determined by GDP per capita, population, and distance. It is assumed that trade flow between the two countries is positively related to their economic size and population. The gravity model has been analysed in six developed countries concerning trade with GCC countries from 2001 to 2012. The study concluded that GDP per capita and population for GCC and destination countries was significant. It also suggests that the trade barriers among the countries must be eradicated for better trade flow.

Suggested Citation

  • Sahar Hassan Khayat, 2019. "A gravity model analysis for trade between the GCC and developed countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1703440-170, January.
    • Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1703440
    DOI: 10.1080/23322039.2019.1703440
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    Cited by:

    1. Emilie Rutledge & Efstathios Polyzos, 2023. "The rise of GCC‐East Asian trade: A cointegration approach to analysing trade relationships," The World Economy, Wiley Blackwell, vol. 46(7), pages 2231-2246, July.
    2. Ritu SHEKHAWAT & C.R. BISHNOI, 2024. "India’s global trade potential. A panel gravity model approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(638), S), pages 75-94, Spring.
    3. Jiangyuan Fu & Linyi Chen & Huidan Xue, 2023. "The Impacts of Trade Facilitation Provisions on Fresh Agricultural Products Trade between China and the BRI Countries," Agriculture, MDPI, vol. 13(2), pages 1-17, January.

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