Development of Trade Communication of Iran with Selected Countries

Authors

  • Hamidreza Alipour Department of Management and Economics, Rasht Branch, Islamic Azad University,, Rasht, Iran
  • Leila Gholamipour PhD Student in Economics, Islamic Azad University , Kerman, Iran

DOI:

https://doi.org/10.5195/emaj.2016.105

Keywords:

economic integration, globalization, gravity model, panel data, trade gap

Abstract

The present study aimed to determine the trade potential of Iran with 13 countries that have made up the largest volume of foreign trade in the last decade. For this purpose, we have utilized the generalized gravity model and multivariate regression technique with panel data is used to estimate it. The results show that the most important variables affecting the trading volume of Iran are gross domestic product per capita and population, and that geographical distance variable had insignificant impact. On the other hand, the most trade gap of Iran is attributed to Turkey and the United Kingdom and the minimum gap is related to Afghanistan.

References

Abu-Hussin, M. F. (2010). Exploring International Trade between Malaysia and GCC Countries: Empirical Analysis on Trends.

Al Atrash, H., & Yousef, T. (2000). Intra-Arab Trade: is it too Little?. IMF Working Paper, 00/10, International Monetary Fund (IMF).

Ashrafzade, Hamid Reza, 2005, The Economic Integration of Developing Countries; Application of Gravity Model with Fusion Data in GMM Method and Convergence, Journal of Commerce, No. 36, pp.1-28.

Bendjilali, B. (1997). An intra-trade Econometric model for OIC member Countries: A Cross Country Analysis. IRTI Research Papers, No.55.

Evelyn S., Ahmad, Z., &Thirunaukarasu, S. (2011). Leveraging Trade Opportunities with Non-Traditional Partners: The Malaysia-GCC.

Ghani, G. M. (2007). Does OIC Membership Reduce Trade? Journal of Economic Cooperation, 28(4): pp.39-62.

Gul, Nazia , Hafiz, M. Yasin,2011, The Trade Potential of Pakistan: An Application of the Gravity Model, The Lahore Journal of Economics,No 16 : 1: pp.23-62.

Hassan, M. K. (1998). An Empirical Investigation of Economic Cooperation Among the OIC Member Countries. Economic ResearchForum.

Ismail, N. (2008). Explaining Malaysian Bilateral Trade Using the Gravity Model. The Empirical Economic Letters, 7(8): pp.811-818.

Karagoz, Kadir, OzanSaray,M. ,(2010), Trade Potential of Turkey with Asia-Pacific Countries: Evidence from Panel Gravity Model, International Economic Studies, Vol. 36, No. 1 (New Issue), pp.19-26.

Karimi, Hossein, 2006, globalization, economic integration and trade potential: investigation of gravity model in Iran trade analysis, Journal of Modern Economics and Business, No.5, p.118.

Poyhonen, P. (1963). A Tentative Model for the Volume of Trade Between Countries. WelwirtschaftlichesArchiv, 90: pp.93-99.

Raimi, L. &Mobolaji, H. I. (2008). Imperative of Economic Integration Among Muslim Countries: Lessons From EuropeanGlobalisation. Humanomics, 24 (2): pp.130-144.

Simbar, Reza, Iran and Regionalism in Southeast Asia: Strategies and Solutions in Iranian Foreign Policy, 2 Journals of Theoretical Politics, No. 5, Winter 1999 and Spring 2009.

Souri, Amir Reza, Shakini, Ahmad, 2011, Factors influencing mutual trade of Iran with regional blocks, Journal of Economic Modelling, Vol. III, No.3.

T inbergern, J. (1962). Shaping the World Economy: Suggestions for an International Economic Policy. Journal of Farm Economics,46(1): pp.271-283.

Tayebi, Komeil, Azerbaijani, Karim, 2001, investigation of trade potential between Iran and Ukraine: using a gravity model, Journal of Commerce, No.21.

Zarzoso, M.I., &Felicitas Nowak Lehmann., (2003). Augmented Gravity model: An Emprical Application to Mercosur – European Union Trade Flows, Journal of Applied Economics, 5, 2, pp.219-316.

Downloads

Published

2017-01-06

Issue

Section

Articles