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The competitive advantage in The Middle East. An empirical approach

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  • Scorbureanu, Alexandrina Ioana

Abstract

This paper explores the determinants of bilateral trade flows among Jordan, Israel and the Palestinian territories during the last 15 years. A gravity model is applied to international trade flows and empirically tested in order to investigate the relationship between the volume and direction of international trade in order to identify competitive advantage areas. Furthermore, the standard gravity model is augmented with additional variables to test whether they are relevant in explaining trade. These variables are infrastructure endowments and per capita incomes. Finally, we analyse to what extent potentials for trade between these two economic areas are important.

Suggested Citation

  • Scorbureanu, Alexandrina Ioana, 2007. "The competitive advantage in The Middle East. An empirical approach," MPRA Paper 17965, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17965
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    References listed on IDEAS

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    4. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    5. 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.
    6. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gravity models; estimation; trade; Middle Asia;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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