TY - JOUR
T1 - Determinants of Trade in the Middle East and North Africa
AU - Gulseven, Osman
AU - Alhadi, Amani Abdullah
AU - Salam, Sofiyat Adeola
N1 - Publisher Copyright:
© 2023, Economic Laboratory for Transition Research. All rights reserved.
PY - 2023/9/15
Y1 - 2023/9/15
N2 - This research explores the determinants of bilateral trade flow between the Middle East and North African countries using a panel data analysis from 1990 to 2019. The structural gravity model is estimated using ordinary least square (OLS) and Poisson Pseudo Likelihood (PPML) techniques. We included six independent variables: the GDP, distance between country capitals, common language, contiguity, common colony, and a regional trade agreement (RTA) dummy. The data is retrieved from the Center for Prospective Studies and International Information (CEPII). OLS estimates suggest that the GDP of both origin and destination countries, distance, contiguity, and RTA signifi-cantly affect trade flows. Similarly, PPML estimation results indicate that bilateral trade flows between MENA are affected by GDP, distance, common language, common colony, and RTA.
AB - This research explores the determinants of bilateral trade flow between the Middle East and North African countries using a panel data analysis from 1990 to 2019. The structural gravity model is estimated using ordinary least square (OLS) and Poisson Pseudo Likelihood (PPML) techniques. We included six independent variables: the GDP, distance between country capitals, common language, contiguity, common colony, and a regional trade agreement (RTA) dummy. The data is retrieved from the Center for Prospective Studies and International Information (CEPII). OLS estimates suggest that the GDP of both origin and destination countries, distance, contiguity, and RTA signifi-cantly affect trade flows. Similarly, PPML estimation results indicate that bilateral trade flows between MENA are affected by GDP, distance, common language, common colony, and RTA.
KW - Gravity model
KW - International Trade
KW - MENA
KW - OLS
KW - PPML
KW - contiguity
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U2 - 10.14254/1800-5845/2023.19-4.10
DO - 10.14254/1800-5845/2023.19-4.10
M3 - Article
AN - SCOPUS:85172015243
SN - 1800-5845
VL - 19
SP - 115
EP - 124
JO - Montenegrin Journal of Economics
JF - Montenegrin Journal of Economics
IS - 4
ER -